• Building Options into your Decisions
• Draw and label decision trees.
(a) Your company is testing the market with a new product line A. If sales are as expected or better your company will introduce an additional line B in year 2. If line B revenues are as expected or better an additional line C will be introduced in year 4. If revenues in year 2 or year 4 are less than expected the new lines will not be introduced.
(b)You have a product which has ok sales but you want to improve sales with a new marketing campaign. If sales do not improve, the product will be discontinued.