Assume that you approach a Marketing company to sell your building located at three different places
Muscat, Nizwa and Sohar. The Marketing Company charges 5 % on each sale. . They accepted to sell the building at Muscat first. If it is sold, then
based on the market condition either they stop selling further or continue to sell one of the other property.
If they are not able sell the property with in a year then they will quit the contract with you. If they sold the
second property then they again based on the market condition they may accept to sell the third property
or stop selling the third property. The cost of the properties and probabilities of sales are given below. Draw
a tree diagram for this decision process and derive a decision which is more beneficial for the Marketing
Company. Do all the calculations properly rounded to four decimal places.
Building location      Price of building     Selling Cost       Probability of selling
Muscat                            25000                 400                              0.7
Nizwa                            20000                  600                              0.5
Sohar                             19000                  750                             0.4