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Business, 09.12.2019 22:31 mandy9386

Jose morales manages a large outdoor fruit stand in one of the less affluent neighborhoods of san jose, california. to replenish his supply, jose buys a box of fruit early each morning from a grower south of san jose. about 90 percent of times the box of fruit turns out to be of satisfactory quality, but the other 10 percent of times are unsatisfactory. a satisfactory box contains 80 percent excellent fruit and will earn $200 profit for jose. an unsatisfactory box contains only 30 percent excellent fruit and will cause a loss of $1,000 to jose. before jose decides to accept a box, he is given the opportunity to sample one piece of fruit to test whether it is excellent. if the sample is unsatisfied, jose can reject the box without paying for it (thus the loss and profit is zero). construct a decision tree to answer the following questions: whether jose should do the sample test and accept or reject the box based on the outcome of the sampling? g

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