# 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.

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

a. Using expected value, determine the best project.

b. Determine the expected value of perfect information.

In ProblemSl-3

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**Related Book For**

## Operations and Supply Chain Management

8th edition

Authors: Roberta S. Russell, Bernard W. Taylor

ISBN: 978-1118738542