• There are two questions for Set 1
• The copyable version of chart is down below.

Set 1

Topic: Decision Analysis

Even though independent gasoline stations have been having a difficult time, Susan Solomon has been thinking about starting her own independent gasoline station. Susan's problem is to decide how large her station should be. After a careful analysis, Susan developed the following table for the projected annual return (in thousands of dollars) as in the table on the left.

Without any information, Susan estimates that the probability of Good Market will be 0.65.

B C VOUAWN 8 Size of the Station Poor Market Good Market 9 Small -10 170 10 Medium -30 270 11 Large -85 315 12 13 14 15 16 17 18 19 20