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
- 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.

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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