Payoff Table & Decision Tree
Purchase price = 10
Selling price = 20 on Christmas day 2 otherwise
Profit/loss = 10 on Christmas day (8) otherwise
a) Compute the payoffs for purchasing 100,200,500 or 1000 trees for each level of demand
b) Set off the payoff table indicating the event and alternative course of action
c) Set up a decision tree
d) Set up an opportunity loss table
https://brainmass.com/business/payoff-table-decision-tree-4494
Solution Summary
The solution provides answers to questions on creating payoff table, decision tree and opportunity loss table.
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