6. The lease of Theme Park, Inc., is about to expire. Management must decide whether to renew the lease for another 10 years or to relocate near the site of a proposed motel. The town planning board is currently debating the merits of granting approval to the motel. A consultant has estimated the net present value of Theme Park's two alternatives under each state of nature as shown on the following page. Supplement to Chapter Five Decision Theory 233 What course of action would you recommend using? a. Maximax. b. Maximin. c. Laplace. d. Minimax regret. Motel Motel Options Approved Rejected Renew s 500,000 $4,000,00 Relocate 5,000,000 100,00 7. 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 alternative 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