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Alternative Favourable market Unfavourable market Large plant 200.000 -180,000 Small plant 100,000 -20,000 Do nothing 0 0 John Thompson has the opportunity of obtaining a market survey that will give additional information on the probable state of nature. Results of the market survey will likely indicate there is percent change of a favorable market. Historical data show positive market surveys accurately predict favorable markets 78% of the time. Likewise, if the negative market survey predicts an unfavorable market, there is 73% chance of its occurring. If it is given P (positive result of survey) = 0.45 and P (negative result of survey)=0.55. If you are using the decision tree analysis in making decision, what is the decision?
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