Merck Assignment Merck & Company: Product KL-798 (A) Build a decision tree to evaluate the decision facing Pat Harlow. In this version, just show the initial decision node then the subsequent chance nodes only

Merck Assignment Merck & Company: Product KL-798 (A) Build a decision tree to evaluate the decision facing Pat Harlow. In this version, just show the initial decision node then the subsequent chance nodes only

Individual assignment to be turned in for a grade. This assignment is based on the Merck & Company:  Product KL-798 (A) case.

  1. Build a decision tree to evaluate the decision facing Pat Harlow. In this version, just show the initial decision node then the subsequent chance nodes only.  What would you recommend?  (Be sure to state all your assumptions and show all your analysis.)
  2. Can you identify any “options” that could be incorporated into the tree as decision nodes? If so, how much does the expected value increase?  Now what should Pat Harlow do with regard to KL-798?  Hint:  Consider the “options” available during the R&D effort.
  3. To which assumptions is your analysis most sensitive? (Note:  we are looking for analysis and insights, not laundry lists.)