A company is developing a new cell phone and has two models under consideration, Model 1 and Model 2. Market research indicates that 70% of the new phone have a high consumer demand and 30% have a 30% low consumer demand. Model 1 Model 2 Investment Required $ 200,000 $ 175,000 Revenue for High Demand $ 500,000 $ 160,000 Revenue for Low Demand $ 450,
A company is developing a new cell phone and has two models under consideration, Model 1 and Model 2. Market research indicates that 70% of the new phone have a high consumer demand and 30% have a 30% low consumer demand. Model 1 Model 2 Investment Required $ 200,000 $ 175,000 Revenue for High Demand $ 500,000 $ 160,000 Revenue for Low Demand $ 450,
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A company is developing a new cell phone and has two models under consideration, Model 1 and | |||||
Model 2. |
|||||
30% have a 30% low consumer demand. | |||||
Model 1 | Model 2 | ||||
Investment Required | $ 200,000 | $ 175,000 | |||
Revenue for High Demand | $ 500,000 | $ 160,000 | |||
Revenue for Low Demand | $ 450,000 | $ 160,000 |
Develop a decision tree to find the best model
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Step 1a1
introduction:
a decision tree is a stretching set of rules used to order a record, or anticipate a consistent value for a record. ... The tree isn't determined by any automatic cycle but instead is drawn by, expected expert probabilities to the results of the choices.
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