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A company is considering alternatives for improving profits: either develop new products or consolidate existing products. If the company decides to develop new products, it can either develop several products rapidly or take time to develop a few products more thoroughly. If the company chooses to consolidate existing products, it can either strengthen the products to improve profits or simply reap whatever gains are attainable without investing more time and money into the products.
The decision tree chart provided in the attached ?QAT1 Task 5 Spreadsheet? shows the predicted gains from each decision alternative described above. Gains depend on how the market reacts to the action taken by the company. The probability of each market reaction is shown on the decision tree.
Note: Save file linked under "File Attachments" to your computer, then open the file. When the files opens, enter your name and student ID as they appear in Taskstream into the respective boxes so the task questions and problems will populate the worksheet.
A. Develop a response to the decision tree chart from the attached ?QAT1 Task 5 Spreadsheet? in which you do the following:
1. Determine the expected value for each of the four decision branches.
a. Describe the process used to reach the solutions you determined in part A1.
2. Determine the decision alternative that has the most favorable expected value.
a. Compare the expected values of the decision alternatives.
B. When you use sources, include all in-text citations and references in APA format.
Note: For definitions of terms commonly used in the rubric, see the Rubric Terms web link included in the Evaluation Procedures section.
Note: When using sources to support ideas and elements in an assessment, the submission MUST include APA formatted in-text citations with a corresponding reference list for any direct quotes or paraphrasing. It is not necessary to list sources that were consulted if they have not been quoted or paraphrased in the text of the assessment.
Note: No more than a combined total of 30% of a submission can be directly quoted or closely paraphrased from outside sources, even if cited correctly. For tips on using APA style, please refer to the APA Handout web link included in the APA Guidelines section.
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