Question: In Problem Sl-3 the Landloc real estate development firm has hired an economist to assign a probability to each direction interest rates may take over

In Problem Sl-3 the Landloc real estate development firm has hired an economist to assign a probability to each direction interest rates may take over the next five years. The economist has determined that there is a 0.50 probability that interest rates will decline, a 0.40 probability that rates will remain stable, and a 0.10 probability that rates will increase.
a. Using expected value, determine the best project.
b. Determine the expected value of perfect information.
In ProblemSl-3

Interest Rates Project Office building0.5 Parking lot Warehouse Decline Stable 1.9 1.4 2.4 1.5 Increase 4.5 2.4 1.0 3.6 0.6 1.5 1.7 Shopping mal 0.7 Condominiums 3.2

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