ABC chemicals are preparing to begin manufacturing the new pharmaceutical product. Originally, they should decide whether to go for small scale or large scale production. Having made decision, profits that they make will rely on:
i) State of economy over next two years.
ii) Whether or not the rival manufacturer launches the similar product.
iii) Amount that ABC makes decision to spend on advertising product (this decision will itself be influenced by scale of production that ABC opt for, whether rival product is launched and state of economy).
(a) Employ influence diagram to represent given decision problem, stating any supposition you have made. (b) Employ influence diagram to deduce outline of the decision tree which could be utilized to represent ABC's problem.