Question: P 4. (25 pt.) Nick has plans to open some pizza restaurants, but he is not sure how many to open. He has prepared a

P 4. (25 pt.) Nick has plans to open some pizza restaurants, but he is not sure how many to open. He has prepared a payoff table to help analyze the situation. States of Nature Alternatives Good Fair Market Poor Market Market Open 1 380,000 70,0001 - 400,000 Open 2 200,000 80,000 - 200,000 Do Nothing 0 0 4A. What decision would he make using Hurwicz approach and a=0.6? (8 pt) 4B. A market research firm provides additional information as: "there is a %25 (percent) chance that the market will be good, a %45 (percent chance that it will be fair, and a %300 percent) chances that it will be poor". Based on the information provided by market research what you would recommend using decision tree to analyze this problem (12 pt) 4C. Based on the information provided by market research and the most probable approach what decision would he make? (4pt)

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