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BUS 307 Week 2 DQ 2 Expected Value .pdf


Original filename: BUS 307 Week 2 DQ 2 Expected Value.pdf
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BUS 307 Week 2 DQ 2 Expected Values and
Decision Trees
From the end of Chapter 8, consider the two capacity options for Arktec manufacturing
from Problem 2 and the three possible demand scenarios from Problem 4, then complete
Problem 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?
Respond to at least two of your classmates’ postings.

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