# of diesel per year. It may satisfy its fuel requirement either by one annual contract or separate monthly contracts for the year. The cost for the annual contract is \$2.25 per gallon. The cost for the monthly contract will average \$1.90 if diesel fuel production is increased, but the average cost will be \$1.65 if diesel fuel production is not increased. The manager estimates a 0.2 probability of no increase in diesel fuel production.It is also possible to get a professional forecast on diesel fuel production at a cost of \$12,000. The manager believes that the following conditional probabilities are realistic appraisals of the forecast?s accuracy.P(forecast indicating no increase | actual no increase) = 0.70P(forecast indicating no increase | actual increase) = 0.1Based on a tree diagram, what is the optimal decision strategy, the associated expected value, and expected value of the forecast? Explain what they mean.Solution details:STATUS Answered QUALITY Approved ANSWER RATING This question was answered on: Apr 19, 2020 PRICE: \$15 Solution~000.zip (25.37 KB) Buy this answer for only: \$15 This attachment is locked × Please Enter The Email Where You Want To Receive Solution. Get this solution for only: \$

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