Subject Reliability and Decision Theory Requirement Dream Games

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Subject
Reliability and Decision Theory

Requirement
Dream Games is an organization dedicated to the creation of innovative video games and consoles. The CEO of the organization needs to determine if, for this year, they will produce and sell the same console they have been selling for the past 5 years, or if they will produce and sell a new console which is more energy efficient, faster, and the graphics are higher quality. The expected projected budget for the production department will be SAR 70,000,000. There is always the possibility of asking the organization to increase the budget, but it will have to be very well crafted, so it has the possibility of being approved. The CEO has been presented with the following numbers in relation to the two consoles:
Product
Investment
Production Price
Customer Price
Projected Sales

Old Console
66,660.000.00
SAR 133.32
SAR 399.96
875,000

New Console
99,990,000.00
SAR 199.98
SAR 599.94
1,100,000

After evaluating the data above and the gaming industry, do the following:
Develop a decision tree for Dream Games in relation to the current and new console production (include the decision tree in an appendix showing chance nodes, probabilities, outcomes, expected values, and net expected value).
Explain the process you used to develop your decision tree.
Using your decision tree, which product should Dream Game select for this year? Why?
Explain your reasoning for your recommendations to Dream Games in relation to the product they should produce and sell in the coming year.
Important Notes:
Rubric:
Attached in PDF, it must be following the “Exceeds Expectation” guidelines.
American English to be used

Length
Minimum 7 pages not including the title and reference pages
font size: 12 Times New Roman

Suggested resource/no limited to
Method is APA 7
Cabanes, B., Hubac, S., Masson, P.L., Weil, b. (2021). Improving reliability engineering in product development based on design theory: The case of FMEA in the semiconductor industry. Research in Engineering Design, 32(3), 309-329.
Liao, S., & Liu, Z., (2022). Enterprise financial influencing factors and early warning based on decision model tree. Scientific Programming,2022, 1-8.
Kascelan, L., Pejic Bach, M., Rondovic, B., & Durickovic, T. (2020). The interaction between social media, knowledge management and service quality: A decision tree analysis. PLoS ONE, 15(8), 1-30.
Minimum 5 sources
One of the 5 Has to be the book ( Attached in PPT )

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