Question: Again consider the situation described in Exercise 19.37, and suppose that management believes there is a .35 probability that the motel complex will be approved.

Again consider the situation described in Exercise 19.37, and suppose that management believes there is a .35 probability that the motel complex will be approved.
a. Draw a decision tree for the theme park's decision problem.
b. Which alternative should be chosen if the theme park uses the maximum expected monetary value criterion? What is the expected monetary payoff for this choice?
c. Suppose that management is offered the option of a temporary lease while the planning board decides whether to approve the motel complex. If the lease costs $100,000, should the theme park's management sign the lease? Justify your answer.

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