Paper details:

Please answer the following questions.
This problem is intended that the student demonstrates how to solve a diagram of this kind and what it would take the final decision according to the results.
Use as a valuable reference the first diagram in Chapter 1 and once you’re done, you should answer the questions listed later.
Specific data
Problem: What will be the price that must be assigned to a product so that the company obtains the largest gain, according to the following data:
FACT 1: The company will analyze two strategies:

Strategy A: Setting a High Price
Strategy B: Setting a Low Price

FACT 2: Reaction Competition

The Strategy A, competition can set a high price with a probability of 60% and a low price with a probability of 40%.
Strategy in the B competition can set a high price with a probability of 50% and a low price with a probability of 50%.

FACT 3: State of the Economy

For each of the 4 branches that emerged in the previous column, appear three states or situations in the economy with a certain probability of occurrence.

Bonanza 30%
Normal 40%
Recession 30%

FACT 4: Probability

This column will be calculated by the student.

FACT 5: Earnings

Net income would get the company are in order the following: $ 130.000
95,000
50,000
120,000
90,000
40,000
110.000
80,000
35,000
100,000
70,000
25,000
FACT 6: Expected Profit
This column will be calculated by the student.
Probability column note in perfect order the 12 values you calculated.
first example called “decisional tree and Price Analysis”. Make the diagram, calculating the probability and write in perfect order the 12 values you calculated.
and answer the following questions:
1) What will be the price to be assigned to a product so that the company obtains the largest gain according to the data?
2) What will be the expected gain?

Paper details:

Please answer the following questions.
This problem is intended that the student demonstrates how to solve a diagram of this kind and what it would take the final decision according to the results.
Use as a valuable reference the first diagram in Chapter 1 and once you’re done, you should answer the questions listed later.
Specific data
Problem: What will be the price that must be assigned to a product so that the company obtains the largest gain, according to the following data:
FACT 1: The company will analyze two strategies:

Strategy A: Setting a High Price
Strategy B: Setting a Low Price

FACT 2: Reaction Competition

The Strategy A, competition can set a high price with a probability of 60% and a low price with a probability of 40%.
Strategy in the B competition can set a high price with a probability of 50% and a low price with a probability of 50%.

FACT 3: State of the Economy

For each of the 4 branches that emerged in the previous column, appear three states or situations in the economy with a certain probability of occurrence.

Bonanza 30%
Normal 40%
Recession 30%

FACT 4: Probability

This column will be calculated by the student.

FACT 5: Earnings

Net income would get the company are in order the following: $ 130.000
95,000
50,000
120,000
90,000
40,000
110.000
80,000
35,000
100,000
70,000
25,000
FACT 6: Expected Profit
This column will be calculated by the student.
Probability column note in perfect order the 12 values you calculated.
first example called “decisional tree and Price Analysis”. Make the diagram, calculating the probability and write in perfect order the 12 values you calculated.
and answer the following questions:
1) What will be the price to be assigned to a product so that the company obtains the largest gain according to the data?
2) What will be the expected gain?