In a Decision Tree Problem Involving Capacity Planning, There Was

question 46

Multiple Choice

In a decision tree problem involving capacity planning, there was a random outcome node with three random outcomes (A,B, and C) which followed a decision node.The probabilities for A, B and C: P(A) =0.4, P(B) = 0.6 and P(C) = 0.2.Payoff following A,B and C respectively are $10000, $5000 and $2000.Expected value of that random outcome node is:

• A)$7400
• B)$7000
• C)$17000
• D)Cannot be determined since there is something wrong with the data given.
• E)$5666.

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Definitions:

New Tenant

An individual or entity that has recently entered into a lease agreement for a property.

Reasonable Means

Methods or actions that are considered sensible and practical under the circumstances for achieving a certain goal.

Breaches its Lease

Occurs when one party fails to fulfill their contractual obligations under the terms of a lease agreement.

Premises

A building or land specified in a legal document or agreement, often related to business or residency.