I NEED HELP WITH PROBLEM 8A ONLY

Q SA 6. The lease of Theme Park, Inc., is about to expire. Management must decide whether to renew the lease for another 10 years or to relocate near the site of a proposed motel. The town planning board is currently debating the merits of granting approval to the motel. A consultant has estimated the net present value of Theme Park's two alternatives under each state of nature as shown on the following page. What course of action would you recommend using? Page 238 4. Maxix b. Maximin c. Laplace d. Minimax regret Options Motel Approved Motel Rejected Renew $ 500,000 $4,000,000 Relocate 5,000,000 100,000 7. Refer to Problem 6. Suppose that the management of Theme Park, Inc, has decided that there is a 35 probability that the motel's application will be approved. a. If management uses maximum expected monetary value as the decision criterion, which alternative should it choose? b. Represent this problem in the form of a decision tree. c. If management has been offered the option of a temporary lense while the town planning board considers the motel's application, would you advise management to sign the lease? The lease will cost $24.000. 8. Construct a graph that can be used for sensitivity analysis for the preceding problem a. How sensitive is the solution to the problem in terms of the probability estimate of 35? b. Suppose that after consulting with a member of the town planning board. management decides that an estimate of approval is approximately 45. How sensitive is the solution to this revised estimate? Explain c. Suppose the management is confident of all the estimated Rept for simillion. If the