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Kring Acosta, after migrating to the United States, is considering opening a new grocery store in town. She is evaluating three possible location sites:
downtown, the mall, and out at the busy traffic circle.
Kring calculated the value of successful stores at these locations as follows:
downtown, $350,000;
the mall, $400,000;
the circle, $500,000.
She calculated her losses if unsuccessful to be $200,000 at either downtown or the mall and $300,000 at the circle. Kring figures her chance of success to be 50% downtown, 60% at the mall, and 75% at the traffic circle.
Required: Draw a decision tree for Kring and select her best alternative.
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