RULE FOR ROUNDING OFF: You may present your solution using four decimal points, however, please use the complete value for computation purposes. Only the final answer would be rounded off in two decimal places.

With the complete solution, formula and explanation, please.

2. ABC Condominium Corp. of Baguio City, recently purchased land and is attempting to determine the size of the condominium development it should build. It is considering three sizes of development: small (di ); medium (di ); and large (di ). With the three levels of demand- low ($1 ), medium (sz ) and high (ss ), the company's management has prepared the following profit payoff table: State of Nature Decision Alternatives Low (s, ) Medium ($2) High (53 ) di - Small Condo 400,000 400,000 400,000 dz- Medium Condo 100,000 600,000 600,000 di. Large Condo (300,000 300,000 900,000 Required: 1. Assuming the probabilities for the state of nature are P(s)) = 0.20; P(sz ) = 0.35 and P(s;) = 0.45, what decision should ABC Condominium Corp make? 2. What is the relevant income in ABC's decision? 3. At how much will the "Medium condo, high demand" payoff would be indifferent between the "Medium condo" and "Large condo" decisions, given all other applicable data input items remain the same? 4. Compute for the Expected Value of Perfect Information. 5. Suppose that before making a final decision, ABC Condominium Corp is considering conducting a survey to help evaluate the demand for the new condominium development. The survey report anticipated to indicate one of the two levels of demand: weak (W) or strong ($). The relevant probabilities are as follows: P(sI ( W) = .75 P(S) I S) = .25 P(52 1 W] = .70 P(52 1 5) = .30 P(W) = 0.45 P(SI W) = 45 P(SIS) = .55 P(S) = 0.55 A. What is the expected Value with sample information? B. What is the expected value of sample information? C. What is the efficiency of the survey information (present your answer in decimal number NOT percentage for ex: 0.2000 not 20%)? RULE FOR ROUNDING OFF: You may present your solution using four decimal points, however please use the complete value for computation purposes. Only the final answer would be rounded off in two decimal places