Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 49

Construct a decision tree for the decision situation described in Problem and indicate the best decision.
Problem
Fenton and Farrah Friendly, husband-and-wife car dealers, are soon going to open a new dealership. They have three offers: from a foreign compact car company, from a U.S. producer of fullsized cars, and from a truck company. The success of each type of dealership will depend on how much gasoline is going to be available during the next few years. The profit from each type of dealership, given the availability of gas, is shown in the following payoff table:
Determine which type of dealership the couple should purchase.