Fenton and Farrah friendly, husband-and wife car dealers, are soon going to open a new dealership. T


Question: Fenton and Farrah friendly, husband-and wife car dealers, are soon going to open a new dealership. They have three offers: from a foreign company, from a U.S.-producer of full-sized cars, and from a truck company. The success of each type of dealership will depend on how much gasoline is going to be available during the next few years. The profit from each type of dealership given the available of gas, is shown in the following table

Gasoline availability

Dealership Shortage .6 Surplus .4
Compact cars $ 300,000 $ 150,000
Full-sized cars -100,000 600,000
Trucks 120,000 170,000

a. Determine which type of dealership the couple should purchase

b. Construct a decision tree for the decision situation described and indicate the best decision.

Price: $2.99
See Solution: The solution consists of 2 pages
Deliverables: Word Document

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