For this assignment we ill focus on creating a new  versus used car decision tree.  aper details: Build a decision tree to help you decide if you want to purchase a new car or a used car.

New Versus Used Car Decision Tree.

Option #2: New Versus Used Car Decision Tree. Paper details: Build a decision tree to help you decide if you want to purchase a new car or a used car. The biggest concern or risk with purchasing a used car is the potential need for repairs and not knowing about any previous problems the car might have had. There is a 40% chance that a used car will need to be repaired within a one-year period; however, there is a 90% chance that the new car will not need any repairs during the same period.

The cost for a used car is $7,500, and the cost for a new car is $15,000. Use the information in the table below to decide whether you should buy a used car versus a new car.

New Versus Used Car Decision Tree.

Pick the decision with the lower investment required. Create a decision tree to show outcomes for each decision node using the SilverDecisions website Links to an external site. http://silverdecisions.pl/SilverDecisions.html?lang=en Note: While the SilverDecisions tool is intuitive, you can find a manual here Links to an external site. http://silverdecisions.pl/ Calculate the expected value of each outcome and show your calculations (Probability x Impact). Export your decision tree as a .png file and save it on your computer. Explain the best option based on the outcome and why. Cost to buy a new car $15,000 Cost to buy a used car $7,500.

New Versus Used Car Decision Tree.

Probability of not having any repairs within one year 90% Probability of repairing a used car within one year 40% Cost of repairs for a new car $5,000 Cost of repairs for a used car $9,000 Be sure to properly organize your writing and include a cover page, an introduction, headings/subheadings for the body of your work, analysis, and recommendations, a conclusion, an appendix, and a list of references. Consult this assignment template Links to an external site.for a more complete list of requirements.

New Versus Used Car Decision Tree.

Your response should be 1-2-pages in length, including your decision tree, and conform to the CSU Global Writing Center Links to an external site.. Copy and paste your exported SilverDecisions .png file into a Microsoft Word document for submission. Refer to the Critical Thinking Assignment grading rubric below for more information on assignment expectations and grading. For assistance on creating a decision tree, review Section 11.4.2.5 in the PMBOK® Guide (7th ed.), paying particular attention to Figure 11-15. https://youtu.be/ZVR2Way4nwQ

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