Question: QUESTION 34 PDC is optimistic about the potential for the luxury high-rise condominium complex. Suppose that this optimism leads to an initial subjective probability assessment

QUESTION 34 PDC is optimistic about the potential for the luxury high-rise condominium complex. Suppose that this optimism leads to an initial subjective probability assessment of 0.8 that the demand will be strong (51) and a corresponding probability of 0.2 that the demand will be weak (2) Using the table below and the expected value approach, calculate the expected values (EV) for each decision allemative. What is the EV for the recommended decision State of Nature State of Nature Decision Alternative Strong Demand (1) Weak Demand (2) Small complex, d1 8 7 5 14 Medium complex, d2 20 -9 Large complex, d3

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