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Joe is considering three options for his business facility next year. He options are (i) expand his current shop, (ii) move to a larger facility,

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Joe is considering three options for his business facility next year. He options are (i) expand his current shop, (ii) move to a larger facility, or (iii) make no change at all. The payoff table given below gives the rm's prots under various states of the economy (Good, Average, Poor) for each of Joe's potential strategies (Expand, Move, No Change). The criterion of realism is 0.4. PAYOFFS Good Average Poor Expand $32 $24 -$8 Move $34 $22 -$4 No change $38 $12 $2 0.34 0.60 0.26 Probability

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