Previous Page Next Page Page 5 of 10 Question 5 (14 points) Jerry Smith is thinking about opening a bicycle shop in his hometown. Jerry can open a large store, a small store or no store. The profits will depend on the size of the store and whether the market is favourable or unfavourable. In addition, Jerry is thinking about having a market research study done at a cost of $5,000. The study could be favourable or unfavourable. After analysing all of the available information Jerry has created the following decision tree with the payoffs shown in $1000s: Pavourable Markot (0.99 Large Store Unfavourable Market (01) -55 Favourable Market (0.9) 35 Favourable Survey (0.6) Small Store Uafavourable Mark(1)-2s -5 Favoarable Market (012) Large Store Unisvairable Mark CuNS- Survey 4S Siaali sow Unfavourable Survey (。4) B: ment #4 2:00:00 Kudzaishe Chakabveyo: Attempt 1 Large Store Unfavourable Markt (01)-55 Favourable Mad -35 Favourable Survey (0.6) Small Store Unlavourable Market (0.1) 2 No Store Favourable Market (0.12) Large Store Unfavoarable Market (0.8H) 5s -53 Pavoaralble Market (0.12 ) a all Store UnExvourable Market (0s5)25 No St Large Sto4e Undswoarable Marka (0) 50 Fawarable Mark (0.5) Store Unfavouratde Marekt (os)g0 Round your answers to 1 decimal place as needed. In blank #1 enter the expected value at node 6. * In blank #2 enter the expected value at node 7 In blank #3 enter the expected value at node 8. In blank #4 enter the expected value at node 9 Unfavour able Marekt (05) 20 0 Round your answers to 1 decimal place as needed. In blank #1 enter the expected value at node 6 In blank #2 enter the expected value at node 7. In blank #3 enter the expected value at node 8. In blank #4 enter the expected value at node 9. In blank #5 enter the expected value at node 10. In blank #6 enter the expected value at node 11. In blank #7 enter the expected value at node 3. In blank #8 enter the expected value at node 4. . In blank #9 enter the expected value at node 5. . In blank #10 enter the expected value at node 2. . In blank #11 enter the expected value at node 1 . In blank #12 enter the expected value of sample information. Is the market research study worth the cost? Enter your answer las 'yes" or "no") in blank #13. . In blank #14 enter the efficiency of the sample information (include the percent sign with your answer and round to 0 decimal places. Enter your answers in $1000s without the $ sign (i.e as 12.34, not $12.340). Round your answers to 2 decimal places as needed (if the second decimal place is 0, enter the number as 12.3, not 12.30) Previous Page Next Page Page 5 of 10 Question 5 (14 points) Jerry Smith is thinking about opening a bicycle shop in his hometown. Jerry can open a large store, a small store or no store. The profits will depend on the size of the store and whether the market is favourable or unfavourable. In addition, Jerry is thinking about having a market research study done at a cost of $5,000. The study could be favourable or unfavourable. After analysing all of the available information Jerry has created the following decision tree with the payoffs shown in $1000s: Pavourable Markot (0.99 Large Store Unfavourable Market (01) -55 Favourable Market (0.9) 35 Favourable Survey (0.6) Small Store Uafavourable Mark(1)-2s -5 Favoarable Market (012) Large Store Unisvairable Mark CuNS- Survey 4S Siaali sow Unfavourable Survey (。4) B: ment #4 2:00:00 Kudzaishe Chakabveyo: Attempt 1 Large Store Unfavourable Markt (01)-55 Favourable Mad -35 Favourable Survey (0.6) Small Store Unlavourable Market (0.1) 2 No Store Favourable Market (0.12) Large Store Unfavoarable Market (0.8H) 5s -53 Pavoaralble Market (0.12 ) a all Store UnExvourable Market (0s5)25 No St Large Sto4e Undswoarable Marka (0) 50 Fawarable Mark (0.5) Store Unfavouratde Marekt (os)g0 Round your answers to 1 decimal place as needed. In blank #1 enter the expected value at node 6. * In blank #2 enter the expected value at node 7 In blank #3 enter the expected value at node 8. In blank #4 enter the expected value at node 9 Unfavour able Marekt (05) 20 0 Round your answers to 1 decimal place as needed. In blank #1 enter the expected value at node 6 In blank #2 enter the expected value at node 7. In blank #3 enter the expected value at node 8. In blank #4 enter the expected value at node 9. In blank #5 enter the expected value at node 10. In blank #6 enter the expected value at node 11. In blank #7 enter the expected value at node 3. In blank #8 enter the expected value at node 4. . In blank #9 enter the expected value at node 5. . In blank #10 enter the expected value at node 2. . In blank #11 enter the expected value at node 1 . In blank #12 enter the expected value of sample information. Is the market research study worth the cost? Enter your answer las 'yes" or "no") in blank #13. . In blank #14 enter the efficiency of the sample information (include the percent sign with your answer and round to 0 decimal places. Enter your answers in $1000s without the $ sign (i.e as 12.34, not $12.340). Round your answers to 2 decimal places as needed (if the second decimal place is 0, enter the number as 12.3, not 12.30)