An investor is to purchase one of three types of real estate; an apartment building, an office

building, or a warehouse. The future state of nature will determine how much profit the investor

will make. The payoff table is:

$$

a$-$What is the expected monetary value of each purchase option when the probability of good

economic conditions is $\mathrm{.}6$ and which is the best option under this probability?

b$-$Say you are curious about the probability of each state of nature, so you decide to explore.

Over what range of values for the probability of good economic conditions would each purchase

option be the most favored, if it is ever most favored. Show your work!