A decision tree is a schematic representation of the alternatives available to

A decision tree is a schematic
representation of the alternatives available to a decision maker and
their possible consequences (Stevenson, 2021).
Dream Games is an organization dedicated
to the creation of innovative video games and consoles. The CEO of the
organization needs to determine if, for this year, they will produce and
sell the same console they have been selling for the past 5 years, or
if they will produce and sell a new console which is more energy
efficient, faster, and the graphics are higher quality. The expected
projected budget for the production department will be SAR 70,000,000.
There is always the possibility of asking the organization to increase
the budget, but it will have to be very well crafted, so it has the
possibility of being approved. The CEO has been presented with the
following numbers in relation to the two consoles:

Product

Investment

Production Price

Customer Price

Projected Sales

Old Console

66,660.000.00

SAR 133.32

SAR 399.96

875,000

New Console

99,990,000.00

SAR 199.98

SAR 599.94

1,100,000

After evaluating the data above and the gaming industry, do the following:
Develop a decision tree for Dream Games in relation to the current and new console production (include
the decision tree in an appendix showing chance nodes, probabilities,
outcomes, expected values, and net expected value).
Explain the process you used to develop your decision tree.
Using your decision tree, which product should Dream Game select for this year? Why?
Explain your reasoning for your recommendations to Dream Games in
relation to the product they should produce and sell in the coming year.
Directions:
Your assignment is required to be four to five pages in length,
which does not include the title page and reference pages, which are
never a part of the content minimum requirements.
Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles. Use the Saudi Digital Library to find your resources.
Formatted according to APA 7th edition and Saudi Electronic University writing standards.
It is strongly encouraged that you submit all assignments into
Turnitin prior to submitting them to your instructor for grading. If you
are unsure how to submit an assignment into the Originality Check tool,
review the Turnitin – Student Guide for step-by-step instructions.
Review the grading rubric to see how you will be graded for this assignment.

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