Joana Marie H.

Usop
Midterm Examination in Management Science

You have an option to build a new mall or remove it.

A new mall will cost P500M as investment to build it or demolish/remove an old one which
cost P150M.
To build – 75% chance of high demand – profit is P75M and a 25% weak demand w/ a
profit of P25M.
To remove – 60% chance of high demand – profit of P50M and a 40& weak demand w/
a profit of P10M.
If you are the CEO, should you build or remove it.
What is the EVM of either option? Draw the design tree.

Mall
construction

New Remove
Mall the mall

P500M
P150M

75% chance of 25% weak 60% chance of 40% of weak

high demand demand high demand demand

Profit of P75M Profit of P50M Profit of P10M

Profit of P25M

YES YES NO NO
 As the CEO, have given the option to either remove the existing mall or build a
new one. Even though it would require a significant financial investment, I'll choose to
build a new one because, as you can see, doing so will yield higher profits than removing
the existing one. Additionally, doing this will lower the risk of weak demand, which will
also result in higher profits compared to removing it.

What is the EVM of either option?

Electronic Voting Machine (also known as EVM ) is voting using electronic means to either
aid or take care of the chores of casting and counting votes. An EVM is designed with two units:
the control unit and the balloting unit.