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2. A real estate investor must decide between two possible investments options: an apartment building and an office building. The profit associated with each decision

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2. A real estate investor must decide between two possible investments options: an apartment building and an office building. The profit associated with each decision depends on future economic conditions as shown in the following payoff table. Profit ($ thousands) Strong Weak Apartment 80 40 Office 164 -36 The investor thinks that there is 65% chance that strong economic conditions will prevail in the future. However, the investor is considering hiring an analyst to determine future economic conditions. If the report is favorable then the probability of strong economic conditions is 80%. If the report is unfavorable then the probability of strong economic conditions is 30%. There is also a 70% chance of obtaining a favorable report. Create a decision tree in Excel to solve this problem. Label all nodes and branches and format expected values to currency with one decimal place. Save your Excel file as "Investor" followed by your initials and submit it with your daily prep. Your decision and chance nodes should be labeled "Hire analyst", "Report result", "Building type", and "Economic conditions". Branches should be labeled "Yes", "No", "Favorable", "Unfavorable", "Apartment", "Office", "Strong", and "Weak". State the investor's optimal decision strategy in context based on your decision tree

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