Mathematics, 22.07.2020 19:01 reinabrooke
You are looking to invest in several different real estate deals. You have received ceconomic reports that explain the probability of good economic conditions will be .6 and .4 for bad economic conditions. Below is the Payoff Table, and after calculating the expected value for each decision, you determine the best "payoff deal is:
Good Economic Bad Economic
Conditions Condition (.60) Conditions (.40)
Apartment Building 50,000 30,000
Office Building $100,000 $-40,000
Warehouse 30,000 $10,000
A. Apartment Building
B. Office Building
C. Warehouse
D. None of the above.
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