(Solved): help asap!! only the answers is fine no need for solution Joseph Biggs owns his own ice cream truck ...
help asap!! only the answers is fine no need for solution
Joseph Biggs owns his own ice cream truck and lives 30 miles from a Florida beach resort. The sale of his products is highly dependent on his location and on the weather. At the resort, his profit will be $120 per day in fair weather, $10 per day in bad weather. At home, his profit will be $80 in fair weather and $55 in bad weather. Assume that on any particular day, the weather service suggests a 30% chance of foul weather. a) The correct decision tree for Joseph is shown in b) To maximize the return, for selling ice cream, Joseph's decision should be to use the Expected monetary value for Joseph =$ (enter your answer as a whole number).
FIGURE 1 FIGURE 2 ()
FIGURE 3
A.Step 1: Calculate the expected profit for each possible decision. To do this, we multiply the profit for each outcome by the probability of that outcome occurring. / Fair Weather (70%) \ / Bad Weather (30%) \ / \ / \ Beach Resort Home / \ / \ / \ / \$120 $10 $80 $55