Acme Outdoors Co. is introducing a new line of sport all-terrainvehicles (ATVs). Acme is considering program proposals from twocompeting companies: A & B. A's marketing plan is expected togenerate high sales with a 75% probability and only a 25%likelihood of low sales.
An alternative marketing plan from company B could result in aninitial 60% likelihood of high ATV sales and 40% probability of lowsales. But company B's offer also contains a provision for anoptional follow-on promotion if a low response is returned. If anoptional follow-on ATV promotion is conducted by company B, thereis a 70% chance of ultimately realizing high sales.
Draw an decision tree diagram with branches labeled andprobabilities, do not solve.
