Id 40

As the construction business going through tough times, the construction firm Acme, Inc. must decide whether to build single- family homes, apartments, or condominiums. He estimates annual profits (in $000) will vary with the population trend as follows: Population Trend Type Decline Stable Grow Single 200 100 Family 85 Apartme "70+Last 2 digits of 170 90 nts Your ID" Condos 20 "200+Last 2 100 digits of Your ID" a. If he uses the maximin criterion, which type will he decide to build? (2 pts) b. If he uses the maximax criterion, which type will he decide to build? (2 pts) c. If he uses the equally likely criterion, which type will he decide to build? (2 pts) d. If he feels the chances of declining, stable, and growing population trends are 20%, 40%, and 40%, respectively, which kind of houses will he decide to build? (2 pts) e. If he feels the chances of declining, stable, and growing population trends are 20%, 40%, and 40%, respectively, what is his expected value of perfect information? (4 pts)