Joseph Biggs owns his own ice cream truck an drives 30 miles from a florida beach...

Joseph Biggs owns his own ice cream truck an drives 30 miles from a florida beach resort. The sale of his products is higly dependent oh his location and on the weather. At the resort, his profit will be $120 per day in fair weather, $10 per day in bad weather. At home, his profit will be $70 in fair weather and $55 in bad weather. Assume that on any particular day, the weather service suggests a 40% chance of foul weather.

A) Construct Joseph's decision tree.

B) What is the decision recommended bat the expected value criterion?

Solutions

Expert Solution

Amanda K answered 2 years ago

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