Decision Tree (100 points)
The supplement to Chapter 5 in your textbook describes and develops several decision trees. In a 4-5 page paper, not including the cover and reference pages, develop a decision tree for the case described. Explain the process of developing a decision tree; draw the decision tree (include the decision tree in an appendix showing chance nodes, probabilities, outcomes, expected values, and net expected value); and defend your final decision based on your decision tree.
Case for consideration—An operations manager for a cereal producer is faced with a choice of:
- A large-scale investment (A) to purchase a new cooker which could produce a substantial pay-off in terms of increased revenue net of costs but requires an investment of 3,750,000 Saudi Riyal. After extensive market research it is thought that there is a 40% chance that a pay-off of 9,375,000 Saudi Riyal will be realized, but there is a 60% chance that it will be only 3,000,000 Saudi Riyal.
- A smaller scale project (B) to refurbish an existing cooker. At 1,875,000 Saudi Riyal, this option is less costly but produces a lower pay-off. Again, extensive research data suggests a 30% chance of a gain of 3,750,000 Saudi Riyal but a 70% chance of it being only 1,875,000 Saudi Riyal.
- Continuing the present operation without change (C) which cost nothing, but produces no pay-off.
Direction:
Read Chapter 5 in textbook describes and develops several decision trees ( I attach it )
Be sure to use at least two scholarly, peer-reviewed references in supporting your answer. Current sources are those published within the most recent five-year period, and scholarly sources are those from peer-reviewed journals.
Make certain for each listed reference that you have at least one supporting citation in the body of your content. Your reference page is always the last page of the submission where all individual references get listed. The Saudi Digital Library is a good resource to search for these references. Submit your presentation into the Assignment Dropbox.
It is strongly encouraged that you submit all assignments into the TurnItIn Originality Check prior to submitting them to your instructor for grading. If you are unsure how to submit an assignment into the Originality Check tool, review the TurnItIn Originality Check – Student Guide for step-by-step instructions.
4-5 page paper and APA Style
Looking for solution of this Assignment?
WHY CHOOSE US?
We deliver quality original papers |
Our experts write quality original papers using academic databases.We dont use AI in our work. We refund your money if AI is detected |
Free revisions |
We offer our clients multiple free revisions just to ensure you get what you want. |
Discounted prices |
All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount |
100% originality |
We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity.We have ZERO TOLERANCE TO USE OF AI |
On-time delivery |
We will deliver your paper on time even on short notice or short deadline, overnight essay or even an urgent essay |