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Decision Node Probability Assignment | Professional Writing Services

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January 20th, 2020

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.

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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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