Gizem would like to open a small supermarket. At the present time, she believes that thechances of a successful or unsuccessful supermarket are about the same (50 percent). If Gizemopens a shop and it is successful, she expects to make a profit of $100, 000. If she opens a shopthat proves to be unsuccessful she will lose $50, 000. On the other hand, if Gizem chose not toopen her own shop, she would have the option of investing in a supermarket being started by herbest friend Sonya. The probabilities of Gizem's shop being successful are the same as Sonya's.Gizem would only stand to make $40, 000 if the shop was successful but if it was unsuccessful shewould only lose $30, 000. Of course Gizem can always do nothing.Draw a decision tree for this problem. What is Carla's best strategy if she usesthe EMV objective?Draw the risk profiles and cumulative risk profiles for the problem.Is there any kind of dominance among the possible alternative decisions? Explain.

Decision analysis involves evaluating decision problems and making optimal choices under…

Answered: Draw a decision tree for this problem.…

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Draw a decision tree for this problem. What is Carla's best strategy if she uses the EMV objective? Draw the risk profiles and cumulative risk profiles for the problem. Is there any kind of dominance among the possible alternative decisions? Explain.