The next two questions $(14-15)$ are based upon the following:

A retailer will build a small or a large facility at a new location. Demand can be either low or high, with probabilities estimated to be $0\mathrm{.}4$ and $0\mathrm{.}6,$ respectively.

For a small facility and low demand, the payoff is $$200,000$

For a small facility and high demand, the retailer will then decide if they would further expand the facility. Not expanding will have a payoff of $$223,000$ and there is a payoff of $$270,000$ with expansion

For a large facility and high demand, the payoff is $$800,0000.$

For a large facility and low demand, the retail will then decision if they would do nothing $($hoping the demand will grow and with payoff of $$40,000)$ or to promote business by advertising. The response to advertising may be either modest or sizable, with their probabilities estimated to be $0\mathrm{.}3$ and $0\mathrm{.}7,$ respectively.