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Q. Residents of Mill River have found memories of ice skating at at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former residents. He thinks that if the market is good he can sell 400 copies of the elegant version at $125 each. If the market is not good, he will sell only 300 at $90 each. He can make a deluxe version of the same drawing instead. He feels that if the market is good he can sell 500 copies of the deluxe version at $100 each. If the market is not good, he will sell only 400 copies at $40 each. In either case, production costs will be approximately $35,000. He can also choose to do nothing at this time. If he believes there is a 50% probability of a good market, recommend the best decision using the decision tree approach. Please submit your assignment as an Excel file.
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