5. A fast-food restaurant chain is considering a store expansion program. The most important factor to consider is next

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5 A Fast Food Restaurant Chain Is Considering A Store Expansion Program The Most Important Factor To Consider Is Next 1 (18.17 KiB) Viewed 71 times

5. A fast-food restaurant chain is considering a store expansion program. The most important factor to consider is next 10 years' economy. It is estimated that there is a 50% chance that it goes up, a 30% chance that it stays same, and a 20% chance that it goes down. The strategies and corresponding expected payoffs (profit) are: goes-up same goes down Build 10 new places $20M $10M -$10M Build 5 new places $15M $8M -$2M Do nothing $10M $4M $0 Draw a decision tree. Calculate expected value at every node. What should they do?