Develop a decision tree. Assume each outcome is equally likely, then find the highest EMV. Attached please find additional information. Need the problem to be solved in excel. Thanks!
Textbook info: Operations Management, 8th Edition
Authors: Jay Heizer and Barry Render
Even through independent gasoline stations have been having a difficult time, Susan Helms has been thinking about starting her own independent gasoline station. Susan's problem is to decide how large her station should be. The annual returns will depend on both the size of her station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Susan developed the following table.
Size of First Station Good Market ($) Fair Market ($) Poor Market ($)
Small 50,000 20,000 -10,000
Medium 80,000 30,000 -20,000
Large 100,000 30,000 -40,000
Very large 300,000 25,000 -160,000
Develop a decision tree. Assume each outcome is equally likely, then find the highest EMV.