Question: Infinity Computer Systems is considering the possibility of opening a small computer supplies shop in an OECS country, in which a university campus was recently

  1. Infinity Computer Systems is considering the possibility of opening a small computer supplies shop in an OECS country, in which a university campus was recently established. The company has found a good location that will attract students.Its options are to open a small shop, a medium-sized shop, or no shop at all.The market for a computer supplies shop can be good, average, or bad.The probability of these possibilitiesare0.2 for a good market,0.5 for an average marketand0.3 forabad market.The net profit or loss for the medium-sized and small shops for the various market conditions are given in

Table 1below. Building no shop at all yieldsno loss and no gain.

Infinity Computer Systems is considering the possibility of opening a small computer

Alternatives Good Market ($) Average Market ($) Bad Market ($) Small Shop 75,000 25,000 -40,000 Medium-sized Shop 100,000 35,000 -60,000 No Shop 0 0 It (Ctrl)

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