The bid that gives genesis highest chances of winning

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Reference no: EM131148686

Genesis Medical Imaging is deciding whether to bid on a new contract to supply a local area hospital with a new MRI machine. Such bids are con?dential and the lowest bid entered wins the contract. Genesis estimates it costs $1,000 to prepare for the bid and $900,000 for the MRI machine if it wins the contract. The following table shows the probabilities of Genesis winning the bid given the bids it submits. Probability of Winning Value of Bid 40% $1,000,000 30% $1,250,000 20% $1,750,000 10% $2,000,000 Set up a decision tree to and the bid that gives Genesis the highest chances of winning.

Reference no: EM131148686

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