Question: The construction manager for ABC Construction must decide whether to build single family homes, apartments, or condominiums. He estimates annual profits (in $000) will vary

The construction manager for ABC Construction must decide whether to build single family homes, apartments, or condominiums. He estimates annual profits (in $000) will vary with the population trend as follows: If he uses Bayes' decision rule, which kind of dwellings will he decide to build?

Type Declining Stable Growing
Single family 200 90 70
apartments 70 170 90
condos -20 100 220
prior probability 0.4 0.5 0.1

a. single family

b. apartments

c. condos

d. either single family or apartments

e. either apartments or condos

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