New product for the electronics industry

Reference no: EM131064397

A small company has developed a new product for the electronics industry. The company believes that an advertising campaign costing £2000 would give the product a 70 per cent chance of success. It estimates that a product with this advertising support would provide a return of £11 000 if successful and a return of £2000 if not successful. Past experience suggests that without advertising support a new product of this kind would have a 50 per cent chance of success giving a return of £10 000 if successful and a return of £1500 if not successful.

Construct a decision tree and write a report advising the company on its best course of action

Reference no: EM131064397

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