Zaki, a developer, has a plot of 20-acre land near Klang town. He is considering whether to build a row of single story terrace houses or bungalow houses. He also has the option of not to proceed with the project. Given a favorable market, he estimate that he will earn a profit of RM60,000 if he builds single story terrace houses and RM800,000 if he builds bungalow houses. However, with an unfavorable market condition, he estimates that he will lose RM100,000 with the single story houses and RM400,000 with the bungalow houses. The probability of favorable market is 0.7.

1. Identify the problem

2. what is the objective to use

3. what is the problem and the method to use this is a question on Quantitative analysis