Question: James is required to clean the spire on a tall building. The profit that he will make from the job depends upon the type of chemical used and how resistant the grime on the spire is to removal. Two chemicals are available: strong chemical and weak chemical. If the surface contamination is not resistant to cleaning then the profit that James will make if he decides to use the weak chemical is $950 and the profit if he decides to use the strong chemical is $620 Jf the surface contamination is resistant to cleaning then the profit that James will make if he decides to use the weak chemical is $180 and the profit if he decides to use the strong chemical is $450.James estimates that the probability that the grime on the spire will be resistant to cleaning is 0.25 . The two chemicals use completely different equipment so setting up one lot of equipment to find out if it is resistant or not and then changing will cost more than just using the chemical and equipment already set up. However, if James wants to get a better idea of whether the spire will be resistant to cleaning he can use the drone test, which involves flying a drone up to the spire, dropping some chemical on it and then inspecting the result with the drone camera to see if there is a major or minor colour change. Carrying out this test will cost $60,The test is not perfect. So if the grime on the spire is resistant then the probability of a major colour change is 0.1, while if the grime on the spire is not resistant then the probability of a major colour change is 0.9. Create a decision tree below to represent this situation and using the EMV criterion determine what strategy James should apply to this problem. Monetary values should be answered to the nearest dollar. Probabilities should be answered to three decimal places. In the case of decisions please use probability = 1 for options that are chosen and probability = 0 for options that are rejected. Do not include dollar signs or commas.

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document