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    Determine which type of dealership the couple should purchase

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    Construct a decision tree for decision situation described in problem 25 and indicate the best decision

    Decision Analysis

    Question 25) Fenton and Farrah Friendly, husband and wife car dealers, are soon going to open a new dealership. They have three offers: from a foreign compact car company, from a U.S. producer of full -sized cars, and from a truck company. The success of each type of dealership depends on how much gasoline will be available during the next few years. The profit from each type of dealership, given the availability if gas shown in the following payoff table:

    Gasoline Availability

    Dealership Shortage Surplus
    .6 .4

    Compact cars $ 300,000 $ 150,000
    Full sized -cars - 100,000 600,000
    Trucks 120,000 170,000

    Determine which type of dealership the couple should purchase.

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    https://brainmass.com/business/finance/decision-analysis-determine-which-type-of-dealership-the-couple-should-purchase-276676

    Solution Preview

    Question 25) Fenton and Farrah Friendly, husband and wife car dealers, are soon going to open a new dealership. They have three offers: from a foreign compact car company, from a U.S. producer of full -sized cars, and ...

    Solution Summary

    The expert determines which type of dealership the couple should purchase. A decision tree is construction.

    $2.19