The “Decision Tree Chart”, provided in the attached Simulation Template, shows the predicted gains from each decision alternative described above. Gains depend on how the market reacts to the action taken by the company. The probability of each market reaction is shown on the decision tree.**Task:**

*Note: Macros must be enabled to open and use the Simulation Template spreadsheet.*

Develop a response to the attached decision tree chart in which you do the following:

A. Calculate the expected value for *each* of the **four** decision branches.

1. Explain how you reached your solutions in part A.

B. Determine the decision alternative that has the most favorable total expected value.

1. Explain how you reached your determination in part B.

Explinations must be detailed

Subject | Mathematics |

Due By (Pacific Time) | 06/27/2013 12:00 am |

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