2. Suppose a rancher must decide whether to take his cattle to market in the morning or afternoon. The profit he will make per head of cattle will depend on whether the demand is high or low at the particular time he goes to market. The profit per head is pesos and the corresponding probabilities is displayed in a pay-off matrix. Profit/head Demand High P Demand Low Go to market morning 100 .5 40 .5 Afternoon 160 .3 -20 .7 Required: Make a decision tree for this situation.

2. Suppose a rancher must decide whether to take his cattle to market in the morning or afternoon. The profit he will make per head of cattle will depend on whether the demand is high or low at the particular time he goes to market. The profit per head is pesos and the corresponding probabilities is displayed in a pay-off matrix. Profit/head Demand High P Demand Low Go to market morning 100 .5 40 .5 Afternoon 160 .3 -20 .7 Required: Make a decision tree for this situation.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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