Question

Chris Suit is administrator for Lowell Hospital. She is trying to determine whether to build a large wing on the existing hospital, a small wing, or no wing at all. If the population of Lowell continues to grow, a large wing could return $150,000 to the hospital each year. If a small wing were built it would return $60,000 to the hospital each year if the population continues to grow. If the population of Lowell remains the same, the hospital would encounter a loss of $85,000 with a large wing and a loss of $45,000 with a small wing. Unfortunately, Suit does not have any information about the future population of Lowell. a) Choose the correct decision tree below. ОА. Grow ов. Grow ISO 150 Build large Build large Stable -85 Grow 60 Build small Grow G_60 0 Build small Do not build Stable 45 Grow OD Oc. Grow 150 150 Buillarre Build large 85 Stable -85 Stable Grow G 60 60 Build small Build small Stable -45 Stable_45 0 Grow 0 Do not build Do not build Stable 0 Stable

Answer 1

Using given data, the decision tree diagram becomes :- Grow $150k Build large Stable - $ 85K Grow $60k Build small Stable - -$45k Grow Do not build Stable o a> Correct choice is option ç.