The Construction Manager for ABC Construction Must Decide Whether to Build

Multiple Choice

The construction manager for ABC 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:

What is the expected annual profit for the dwellings that he will decide to build using Bayes' decision rule?

A) $187,000
B) $132,000
C) $123,000
D) $65,000
E) $55,000