Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in milli

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Following is the payoff table for the Pittsburgh DevelopmentCorporation (PDC) Condominium Project. Amounts are in millions ofdollars.
Suppose PDC is optimistic about the potential for the luxuryhigh-rise condominium complex and that this optimism leads to aninitial subjective probability assessment of 0.8 that demand willbe strong (S1) and a corresponding probabilityof 0.2 that demand will be weak (S2). Assumethe decision alternative to build the large condominium complex wasfound to be optimal using the expected value approach. Also, asensitivity analysis was conducted for the payoffs associated withthis decision alternative. It was found that the large complexremained optimal as long as the payoff for the strong demand wasgreater than or equal to $17 million and as long as the payoff forthe weak demand was greater than or equal to -$20 million.