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Decision tree exercise

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Decision Tree Exercise

You are a manager of Circuit Town, which sells Xbox2010. The demand ofXbox2010 in the holiday season is 200 units with probability 0.8 and 400units with probability 0.2. You have to make an order from MSFT inadvance. You can either purchase 200 units or 400 units. The purchaseprice is $150 per unit and the retail price is $300 per unit. After the holiday, you dump unsold units to leftover.com with price $50 per unit. Build adecision tree and decide how many units you want to order.

Submission: You must submit your answers to this exercise in the form of asingle Word document. You may cut and paste your Excel work into thisWord document.

Reference no: EM132426485

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