Question: Problem 411 (Algorithmic) Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. 5.... .. a.-.

 Problem 411 (Algorithmic) Following is the payoff table for the Pittsburgh
Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. 5....

Problem 411 (Algorithmic) Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. 5.... .. a.-. Decision Alternatwe Strong Demand 51 Weak Demand S; 7 Suppose PDC is optimistic about the potential for the luxury higherise condominium complex and that this optimism leads to an i 'tial subjective probability assessment of 0.83 that demand will be strong (51) and a corresponding probability of 0.17 that demand will be weak (52). Assume the decision alternative to build the large condom um complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.25 million and as long as the payofor the weak demand was greater than or equal to 4121.41 million. a. Consider the medium complex decision. How much could the payoff under strong demand in ease and still keep decision alternative d3 the optimal solution? If required, round your answer to two decimal places. The payoff for the medium complex under strong demand remains less than or equal to 3; :i m on, the large complex remains the best decision. b. Consider the small complex decision. How much could the payoff under strong demand increase and still keep decision alternative 0': the optimal solution? If required, round your answer to two decimal places. The payoff for the small complex under strong demand remains less than or equal to 3; :i million, the large complex remains the best decision

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