Decision Node Probability Assignment | Professional Writing Services
A group of medical professionals is considering the construction of a private clinic. If the medical demand is high, the physicians could realize a net profit of $100,000.00.If the market is not favourable, they could lose 40,000.00. Of course, they did not have to proceed at all, in which case there does not cost.
In the absence of any market data, the best the physicians can guess is that there is a 50-50 chance the clinic will be successful. Construct a decision tree to help analyze this problem. What should be medical professionals do?
100,000 Success0.5Make Clinic 30,000Failure0.5 30,000 (40,000) Do not make clinic 0 Alternative Outcome Make Clinic SuccessFailure Do not make clinic Evaluation of Decision NodeProbability…
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