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Construct a decision tree to help analyze this problem. What should the medical professionals do?

josh
April 22, 2014 0 Comment

[meteor_slideshow slideshow=”adssa” metadata=”height: 126, width: 630″]

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A group of medical professionals is considering the
construction of a private clinic. If the medical demand is high (i.e., there is a favorable market for the
clinic), the physicians could realize a net profit of
$100,000. If the market is not favorable, they could
lose $40,000. Of course, they don%u2019t have to proceed
at all, in which case there is no cost. In the absence
of any market data, the best the physicians can guess
is that there is a 50%u201350 chance the clinic will be successful. Construct a decision tree to help analyze this
problem. What should the medical professionals do?
[meteor_slideshow slideshow=”best” metadata=”height: 126, width: 630″]

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