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Problem $5$S$-3($Static$)$

A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm's capacity.

The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nature

are as shown in the table below. Suppose after a certain lamount of discussion, the contractor is able to subjectively assess the

probabilities of low and high demand: $P(low)=\mathrm{.}3$ and high elp Save & Exit

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Problem $5$S$-3($Static$)$

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A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm's capacity. The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nature are as shown in the table below. Suppose after a certain$-$amount of discussion, the contractor is able to subjectively assess the probabilities of low and high demand: low