(A) Construct a Decision Tree to Help the Company Make

question 100

Essay

(A) Construct a decision tree to help the company make its decision. Make sure to label all decision and chance nodes and include appropriate costs, payoffs and probabilities.
(B) What is the best lease option? Why?
(C) Suppose the company could hire an experienced mechanic to inspect the old grader to determine the repair cost before the company makes its final decision. If the mechanic is always correct in his assessments, what is the most the company would pay for the inspection?

---

Definitions:

Electrical Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field; comes in positive and negative forms.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons.

Axon

A long, slender projection of a nerve cell that typically conducts electrical impulses away from the neuron's cell body.

Soma

The body of a neuron, containing the nucleus and metabolic machinery necessary for maintaining cell functions.