A contractor has the opportunity to choose between building a house or doing two extension works in
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A contractor has the opportunity to choose between building a house or doing two extension works in the next 6 months. If you build the house and sell it, you can make $25,000. However, if the housing market is affected by the increase in mortgage interest rates and would lose $5,000. On the other hand, you can earn $17,000 by performing both expansion jobs, regardless of market behavior. Based on excel QM which matrix would you deal with?
a) Develop a payment matrix for this problem
b) What alternative should be chosen if the contractor is an optimist?
c) What alternative should be chosen if the contractor is a pessimist?
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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