Business, 05.05.2020 17:31 tayler6289

Softside Systems has a $100,000 fixed price contract for installation of a new application system. The project is expected to take 5 weeks and cost $50,000. Experience with similar projects suggests a 0.30 likelihood that the project will encounter problems that could delay it by as much as 3 weeks and increase the cost by $30,000. By increasing the project staff by 20 percent for an additional cost of $10,000, the likelihood of problems would be reduced to 0.20, and the delay and cost to 1 week and $8,000, respectively. Set up a decision tree to show whether Softside should increase the size of the project staff.

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Softside Systems has a $100,000 fixed price contract for installation of a new application system. T...

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