Multiple Choice
Use the following to answer the question(s) below.
Sunny Side Condominiums recently purchased land outside of Toronto and is trying to decide the size complex it should build (large or small) . The following payoff table (in thousands of dollars) considers three possible levels of demand.
-If there is a 45% chance that the demand level will be low, 30% that it will be medium and 25% chance that it will be high, the expected value (in thousands of dollars) associated with the best action is
A) $326.25.
B) $310.
C) $535.
D) $208.75.
E) $225.
Correct Answer:

Verified
Correct Answer:
Verified
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