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Wgu Mba Decision Analysis - the Entire Course

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WGU MBA Decision Analysis - The Entire Course

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COSTS Machine 1 Machine 2 Machine 3 Machine 4
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DA_Task4.PPX This is the decision tree for Shuzworld’s decision about opening a new store. According to the case study, the stand-alone store would see profits of $700,000 if there was a favorable market and losses of $400,000 if the market was unfavorable. The mall store would see profits of $300,000 with a favorable market and losses of $50,000 if there was an unfavorable market. There is a 50/50 probability on both of these choices for favorable/unfavorable market. Not opening a store would see no profits nor losses. However, the company is considering purchasing market research, which could have a positive impact or a negative impact on the market. They could also decide to not purchase market research, which would have no impact on the market. Purchasing market research would cost $20,000, and it has a 60% chance of showing a favorable market and a 40% chance of showing an unfavorable one. If the survey is…...

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