Question: (a) If the probability that the rezoning will be approved is 0.5, what decision is recommended? Recommended Decision: What is the expected profit? Enter your

(a) If the probability that the rezoning will be

(a) If the probability that the rezoning will be approved is 0.5, what decision is recommended? Recommended Decision: What is the expected profit? Enter your answer in dollars. For example, an answer of $200 thousands should be entered as 200 , 000. residents. Probabilities are as follows: Let H= High resistance to rezoning L= Low resistance to rezoning P(H)=0.55P(Sl1H)=0.16P(s2H)=0.84 P(L)=0.45P(S1L)=0.86P(S2L]=0.14 \begin{tabular}{ll|} \hline High resistance: & 9 \\ Low resistance: & \\ \hline \end{tabular} (c) If the option will cost the irvestor an additional $10,000, should the investor purchase the option? The investor purchase this option, as the payolf of the investing in it is than $10,000 dollars. EVSI =

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