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

The construction manager for Andorra Construction

The construction manager for Andorra 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: Population Trend Type Declining Stable Growing Single Family 200 90 70 Apartments 170 90 Condos -20 100 220 Prior Probability 0.5 70 0.4 0.1 Exercise Manager want to obtain the more objective estimates to decide to hire him. Then he analyses by these finding states: State of nature P (finding State) Favorable (F) Unfavorable (U) Declining (D) 0.4 0.6 Stable (s) 0.8 0.2 Growing (G) 0.3 0.7 What is decision that manager should take from his result's analysis? Give the reason! The construction manager for Andorra 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: Population Trend Type Declining Stable Growing Single Family 200 90 70 Apartments 170 90 Condos -20 100 220 Prior Probability 0.5 70 0.4 0.1 Exercise Manager want to obtain the more objective estimates to decide to hire him. Then he analyses by these finding states: State of nature P (finding State) Favorable (F) Unfavorable (U) Declining (D) 0.4 0.6 Stable (s) 0.8 0.2 Growing (G) 0.3 0.7 What is decision that manager should take from his result's analysis? Give the reason

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!