a) Describe what is involved in the decision process.
Give an example of a good decision that you have made that resulted in a bad outcome. Also give an example of a bad decision that had a good outcome. What was good or bad about these decisions?
A group of doctors is considering opening a private clinic. If medical demand is high (i.e. there is a favourable market for the clinic) the doctors could realise a net profit of £100,000. If the market is not favourable they could lose £40,000. If they choose not to proceed at all there is no cost and no profit. In the absence of any market data the doctors guess that there is a 50-50 chance that the clinic will be successful. Construct a decision tree to help analyse this problem. What should the doctors do?