Health Care Associates builds and manages office complexes for medical practices. The company is considering building a one, two, or three story complex. The annual payoffs will depend on the occupancy rate of the complex as shown in the following decision table. The payoffs are also shown (in millions of dollars) along with the probabilities.

a. Choose the best office complex to build using decision making under risk.
b. What is the most that Health Care Associates should pay for additional information?

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Occupancy Rate Less than 25% More Betwec Between than 25%-50% 50%-75% 75% $3.3 Option One-story-1.2 complex Two-story-$4.1 complex Three-story-$5.8 complex Probability 0.15 S0.4 $1.1 -$3.0 $1.9$4.1 $4.8 $3.7 $6.5 0.20 0.42 0.23