Question 2 A building supply store is considering expanding its capacity to meet a growing demand for its products. The alternatives are to build a new store at a site nearby, expand the old one, or do nothing. Here are the regional economic outlooks: a 20% chance that the economy will remain unchanged, a 50% probability of an upturn, and a 30% chance of an economic downtum. The following estimates of annual returns have been provided: Do nothing Build new store Expand old store 3.8 3.0 1.0 0.6 1.0 0 Stable market (millions) Market upturn (millions Market downturn (millions) -1.0 -0.6 -0.2 Assume the goal is to maximize expected profit. a) Set up a decision-tree for this problem b) What are the returns facing the company? c) What should the company do? (10 Marks) (6 Marks) (4 Marks)