Julianna is considering opening a bicycle shop in West Palm Beach. Julianna enjoys biking, but this is to be a business endeavor from which she...

Julianna is considering opening a bicycle shop in West Palm Beach. Julianna enjoys biking, but this is to be a business endeavor from which she expects to make a living. She can open a small shop, a large shop, or no shop at all. Because there will be a 5 year lease on the building that Julianna is thinking about using, she wants to make sure she makes the correct decision. Julianna is also thinking about hiring her old marketing professor to conduct a marketing research study to see if there is a market for her services. The results of such a study could be either favorable or unfavorable. Develop a decision tree for Julianna.

What decision is recommended by the expected value criterion?

Large shop 

No shop at all 

Small shop 

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