Problem 2:The PDC is a government agency tasked with supporting the development of the Oman economy. One of PDC`s key strategies is to support the diversification of the economy away from a reliance on oil. One of the initiatives under considerations is the construction of a new business complex. The complex will be located near the international airport and will consist of a number of purpose built business units. PDC is also expected to maximize the financial return on the project. However, PDC is facing some uncertainty particularly in relation to the expected demand for units in the complex. PDC president gave two possible chance event outcomes: a strong demand and a weak demand.

S1 = strong demand for the units

S2 = weak demand for the units

As a result of this uncertainty, PDC has commissioned three alternative plans for the complex:

D1 = to build a small complex of 30 business units

D2= to build a medium sized complex of 60 units

D3=to build a large complex of 90 units.

	State of nature
Decision Alternative	Strong Demand S1	Weak Demand S2
Small complex,D1	8	7
Medium Complex,D2	14	5
Large Complex,D3	20	-9

Table show, payoff table for the PDC project (in million Rials)

Apply Pay-off matrix to identify the Maximax, Maximin, Minimax Regret rule. Provide decisions so that PDC can make a choice.