Assignment:
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 $70 in fair weather and $55 in bad weather. Assume that on any particular day, the weather service suggests a 40% chance of foul weather.
a) Construct Joseph’s decision tree.
b) What decision is recommended by the expected value criterion?
Provide complete and step by step solution for the question and show calculations and use formulas.