Question: A real estate developer is considering developing a small, medium or large-sized office building. The payoff value depends on whether demand for office space decreases,

A real estate developer is considering developing a small, medium or large-sized office building. The payoff value depends on whether demand for office space decreases, stays the same or increases. The estimated payoffs for each scenario are shown below. What is the maximin or the "best of worst" payoff value? Payoffs ($K) Chance Outcomes Decision Choices Decreased Demand Same Demand Increased Demand Small 2813 2608 2440 Medium 2587 3809 3809 Large 2439 4145 6895

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