Question: will like. 5. Problem 4-11 (Algorithmic) Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in milions of dollars:

Problem 4-11 (Algorithmic) Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in milions of dollars: Suppose POC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probablity assessmentyof 0.a that demand will be strong (S1) and a corresponding probability of 0.2 that demand will be weak (S2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to 517.5 million and as long as the payoff for the weak demand was greater than or equal to - 519 million. a. Consider the medium complex decision. How much could the payoff under strong demand increase and still keep decision alternetive da the optimal solution? if required, round your answer to two decimal places. The payoff for the medium complex under strong demend remains less than or equal to $ million, the large complex remains the best decision. a. Consider the medium complex decision. How much could the payoff under strong demand increase and still keep decision aiternative d3 the optimal solution? If required, round your answer to two decimal piaces. The payoff for the medium complex under strong demand remalns less than or equal to s milion, the large complex remains the best decision. b. Consider the small complex decision. How much could the payoff under strong demand increase and still keep decision aiternative ds the optimal solution? If required, round your answer to two decimal places. The payoff for the small complex under strong demland remains less than or equal to s mitlion, the large complex remains the best decision
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