A retailer must decide whether to build a small or a large facility at a new location. Demand

at the location can be either low or high, with probabilities estimated to be $0\mathrm{.}4$ and $0\mathrm{.}6,$

respectively. If a small facility is built and demand proves to be high, the manager may

choose not to expand $($payoff$=$$$223000)$ or to expand $($payoff$=$$$270000).$ If a small facility

is built and demand proves to be low, there is no reason to expand and the payoff is

$$200000.$ If a large facility is built and demand proves to be low, the choice is to do nothing