Seneca Hill Winery recently purchased land for the purpose of establishing a new vineyard. Management is considering two varieties of white grapes for the new vineyard: Chardonnay and Riesling. The Chardonnay grapes would be used to produce a dryChardonnay wine, and the Riesling grapes would be used to produce a semidry Riesling wine. It takes approximately four years from the time of planting before new grapes can be harvested. This length of time creates a great deal of uncertaintyconcerning future demand and makes the decision concerning the type of grapes to plant difficult. Three possibilities are being considered: Chardonnay grapes only; Riesling grapes only; and both Chardonnay and Riesling grapes. Seneca managementdecided that for planning purposes it would be adequate to consider only two demand possibilities for each type of wine: strong or weak. With two possibilities for each type of wine it was necessary to assess four probabilities. With the help of someforecasts in industry publications management made the following probability assessments.Riesling DemandChardonnay DemandWeakStrongChardonnay DemandWeakWeakStrong0.050.25Revenue projections show an annual contribution to profit of $10,000 if Seneca Hill only plants Chardonnay grapes and demand is weak for Chardonnay wine, and $60,000 if the company only plants Chardonnay grapes and demand is strong forChardonnay wine. If Seneca Hill only plants Riesling grapes, the annual profit projection is $15,000 if demand is weak for Riesling grapes and $35,000 if demand is strong for Riesling grapes. If Seneca plants both types of grapes, the annual profitprojections are as shown in the following table.StrongWeak0.50$16,0000.20Riesling DemandStrong$12,000 $30,000$50,000(a) What is the decision to be made, what is the chance event, and what is the consequence?The decision to be made is ---Select---The chance event is ---Select---Identify the alternatives for the decisions and the possible outcomes for the chance events.The alternatives for the decisions are ---Select---The consequence is ---Select---The possible outcomes for the chance events are ---Select--- (b) Develop a decision tree. (Enter monetary values in thousands and percentages in decimal form.)DescriptionWeak for ChardonnayDecision Tree1Plant ChardonnayPlant both grapesPlant RieslingStrong for ChardonnayWeak Chardonnay, Weak RieslingWeak Chardonnay, Strong RieslingStrong Chardonnay, Weak RieslingStrong Chardonnay, Strong RieslingWeak for RieslingStrong for Riesling

This is a diagrammatic representation of decisions available to choose from considering the associated probabilities and payoff related to each decision alternative. This helps in decision making to management.a) The decision to be made is related to growing the types of white grapes for the vineyard. The chance event is the demand that can either be strong, or weak. The consequence is the profit associated with each of the decisions. The alternatives for the decisions are growing, only Chardonnay, only Riesling, or both. The possible outcomes for the chance events are: - Weak demand for Chardonnay, Weak demand for Riesling -Weak demand for Chardonnay, Strong demand for Riesling - Strong demand for Chardonnay, Weak demand for Riesling -Strong demand for Chardonnay, Strong demand for Riesling