Kim wants to use Decision Tree Analysis to help her decide on which MBA program offer she should accept. Answer the following questions and clearly state any assumptions you are making.

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Home>Business & Finance homework help>Management homework help>Kim wants to use Decision Tree Analysis to help her decide on which MBA program offer she should accept. Answer the following questions and clearly state any assumptions you are making.

ASSIGNMENT 3

Table 1 Total Cost
College program Mid Tier top tier Mid tier Top Tier
tution $21,500.00 $74,700.00
room and board $18,000.00 $36,300.00 $39,500.00 $111,000.00
Table 2
Career Path Mid-Tier Program Top-Tier Program MID TIER 3.75 3.25 TOP TIER 3.75 3.25
Consulting $108,909.00 $152,000.00 $125,245.35 $103,463.55 $174,800.00 $144,400.00
Finance / Accounting $93,666.00 $174,000.00 $107,715.90 $88,982.70 $200,100.00 $165,300.00
Supply Chain / Operations $94,833.00 $138,000.00 $109,057.95 $90,091.35 $158,700.00 $131,100.00
Marketing / Sales $99,979.00 $112,000.00 $114,975.85 $94,980.05 $128,800.00 $106,400.00
Table 3
Careers Based off GPA 3.75 GPA 3.50 GPA 3.25 GPA
Consulting 35% 28% 10%
Finance / Accounting 30% 26% 35%
Supply Chain / Operations 20% 23% 35%
Marketing / Sales 15% 22% 20%
MID TIER PROGRAM
Careers Based off GPA 3.75 GPA 3.50 GPA 3.25 GPA
Consulting $16,336.35 $30,494.52 $5,445.45
Finance / Accounting $14,049.90 $24,353.16 $4,683.30
Supply Chain / Operations $14,224.95 $21,811.59 $4,741.65
Marketing / Sales $14,996.85 $21,995.38 $4,998.95
TOP TIER PROGRAM
Careers Based off GPA 3.75 GPA 3.50 GPA 3.25 GPA
Consulting $22,800.00 $42,560.00 $7,600.00
Finance / Accounting $26,100.00 $45,240.00 $8,700.00
Supply Chain / Operations $20,700.00 $31,740.00 $6,900.00
Marketing / Sales $16,800.00 $24,640.00 $5,600.00
Q2
Expected Value
GPA Mid Tier Top Tier
3.75 $456,995.05 $86,400.00
3.5 $98,654.65 $144,180.00
3.25 $377,517.65 $28,800.00
Over all EV $933,167.35 $259,380.00
The difference in the EV's between both programs are that the Mid-tier program is substancially larger than then Top-Tier program.
Q3
College Program FC Variable Cost Total Cost
Mid-tier $39,500.00 -65000 -$25,500.00
Top-Tier $111,000.00 -65000 $46,000.00