Decision tree - low demand [0.2] e y bu in ach em on $152K...

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Unformatted text preview: low demand [0.2] e y bu in ach em on $152K 1 $162K high demand [0.8] low demand [0.2] buy two machines $162 K high demand [0.8] $120K doing nothing 2 $160K $90K $180K $120K subcontracting $160K buy second machine $140 K Alternative Hire Subcontract Do nothing Alternative Hire Subcontract Do nothing Alternative Hire Subcontract Do nothing Alternative Hire Subcontract Do nothing Demand for home improvement ($000) Best payoff Low Moderate High ­250 100 625 625 100 150 415 415 50 80 300 300 Demand for home improvement ($000) Low Moderate High ­250 100 625 100 150 415 50 80 300 Worst payoff ­250 100 50 Demand for home improvement ($000) Weighted Low Moderate High payoff ­250 100 625 158.333 100 150 415 221.667 50 80 300 143.333 Low Demand 350 0 50 Regret ($000) Maximum Moderate Demand High Demand Regret 50 0 350 0 210 210 70 325 325 ...
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This note was uploaded on 07/16/2011 for the course FIN M0110 taught by Professor Kwak during the Spring '11 term at Delaware State.

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Decision tree - low demand [0.2] e y bu in ach em on $152K...

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