Morley Properties is planning to build a condominium development on St. Simons Island, Georgia. The company is trying to decide between building a small, medium, or large development. The payoffs received for each size of development will depend on the market demand for condominiums in the area, which could be low, medium, or high. The payoff matrix for this decision problem is:

	Market Demand
Size of Development	Low	Medium	High
Small	400	400	400
Medium	200	500	500
Large	400	300	800
		(Payoffs in $1000s)

The owner of the company estimates a 20% chance that market demand will be low, a 35% chance that it will be medium, and a 45% chance that it will be high.

1A) What decision should be made according to the maximax decision rule?

1B) What decision should be made according to the maximin decision rule?

1C) What decision should be made according to the EMV decision rule?

2A) Explain the weakness of Morley's Maximax decision

2B) Explain the weakness of Morley's Maximin decision

2C) Explain the weakness of Morley's EMV decision

2D) Perform a decision tree for Morley's decision analysis showing maximax, maximin, and EMV (either send a pic of pencil copy or perform in EXCEL spreadsheet)