Refer to Problem 6. Suppose that the management of Theme Park, Inc., has decided that there is a .35 probability that the motel’s application will be approved.
a. If management uses maximum expected monetary value as the decision criterion, which alter-native should it choose?
b. Represent this problem in the form of a decision tree.
c. If management has been offered the option of a temporary lease while the town planning board considers the motel’s application, would you advise management to sign the lease? The lease will cost $ 24,000.