Question:

Using your reproduced work of Chapter 7 Example 7.1 (page 324 of your text), change the problem from a bid/no bid scenario to another decision scenario. For example, in the human resources area the equivalent may be a hire/no hire decision, in information technology it may be to purchase the server or do not purchase the server; and in the operation's management area it may be to automate the production line or leave it manual, and so forth. To adapt this problem to another decision scenario:

Create new probability estimates and cost of profit figures in your worksheet.

Create a narrative describing this new decision re-application. Be sure to explain where you would obtain the cost and probability data for each branch of your tree-in other words, outcome.

Use the PrecisionTree Add-In or Excel for number crunching.

Should you have issues with the PrecisionTree Add-In or Excel just include a sketch of your decision tree as a Microsoft Word (No 2007 versions) or Excel attachment.