Question 12 1 pts For the Orlando real estate investment problem, assume the probabilities for the gasoline shortage, st
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- Question 12 1 Pts For The Orlando Real Estate Investment Problem Assume The Probabilities For The Gasoline Shortage St 1 (115.15 KiB) Viewed 12 times
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Question 12 1 pts For the Orlando real estate investment problem, assume the probabilities for the gasoline shortage, stable supply and surplus are .5, .3 and .2, then compute the expected payoff of choosing theater, it is (type number only, no decimals, no dollar sign)
Question 1 A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment. Based on the Maximax criteria, the investor should choose Investment Motel Restaurant Theater Shortage $-8,000 2,000 6,000 Gasoline Availability Stable Supply 1 pts $15,000 8,000 6,000 Surplus $20,000 6,000 5,000