BUS307 Week 2 – Discussion Forum 2


Expected Values and Decision Trees [WLO: 2] [CLOs: 1, 2, 4, 5]


First, draw the decision tree for Arktec Manufacturing. When drawing your tree, assume that managers must select a capacity option before they know what the demand level will actually be. Then, calculate the expected value for each decision branch. Which option would you prefer and why?


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