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Howard American Cycles makes and sells custom motorcycles, and does modifications on customers motorcycles. so far most of their advertising is done through word-of-mount. The cycle manufacturer has decided to start advertising through other methods over the next few months. They are choosing between different advertising avenues, and have hired a firm to do market research and estimate the profitability of each choice. With the information below, can you create a decision tree for Howawrd American Cycles and compute the expected value of each advertising avenue? How should Howard American Cycles advertise its product?
Advertising Economy Improves(0.25) Stable(0.5) Falls(0.25)
Print $8,240 $3,120 $800
Web $8,514 $7,650 $4,310
TV $23,900 $12,400 -$18,680
Radio $12,010 $8,050 $1,200
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