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


The construction manager for ABC Construction must decide whether to build single family homes, apartments, or condominiums. H. estimates annual profits (in $000 ) will vary with the population trend as follows: What is his expected value of perfect information? a. $123,000 b. $55,000 c. $132,000 d. $187,000 e. $65,000 What is the expected annual profit for the dwellings that he will decide to build using Bayes' decision rule? a. $65,000 b. $187,000 c. $55,000 d. $132,000 e. $123,000 If he uses Bayes' decision rule, which kind of dwellings will he decide to build? a. Either apartments or condos b. Either single family or apartments c. Single family d. Condos e. Apartments
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