Question 5 You have R110 million cash on hand. You are deciding whether to build a restaurant for R90 million. If the restaurant succeeds, then you can sell it for R 200 million; otherwise you can sell it for R50 million. The restaurant has a 50% chance of success. But if the restaurant is a failure, you can still build a children's play area addition for another R20 million. This has 10% chance of changing the restaurant to a success. Draw up a decision tree for this problem and solve this problem.
Question 5 You have R110 million cash on hand. You are deciding whether to build a restaurant for R90 million. If the restaurant succeeds, then you can sell it for R 200 million; otherwise you can sell it for R50 million. The restaurant has a 50% chance of success. But if the restaurant is a failure, you can still build a children's play area addition for another R20 million. This has 10% chance of changing the restaurant to a success. Draw up a decision tree for this problem and solve this problem.
Chapter9: Sequences, Probability And Counting Theory
Section9.7: Probability
Problem 60SE: Use this data for the exercises that follow: In 2013, there were roughly 317 million citizens in the...
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Transcribed Image Text:Question 5
You have R110 million cash on hand. You are deciding whether to build a restaurant for R90
million. If the restaurant succeeds, then you can sell it for R 200 million; otherwise you can
sell it for R50 million.
The restaurant has a 50% chance of success. But if the restaurant is a failure, you can still
build a children's play area addition for another R20 million. This has 10% chance of changing
the restaurant to a success.
Draw up a decision tree for this problem and solve this problem.
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