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Please help me to solve this question! thanks A real estate investor recently purchased land and is attempting to determine the size of the condominium

Please help me to solve this question! thanks

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A real estate investor recently purchased land and is attempting to determine the size of the condominium development he should build. He is considering three sizes of developments: small, medium and large. At the same time, an uncertain economy makes ascertaining the demand for the new condominiums difficult. The investor realises that a large development followed by low demand could be very costly to him. However, if he makes a conservative small-development decision and then finds a high demand, then his profits will be lower than they might have been. With the three levels of demand: low, medium, and high, the investor has prepared the following profit (in $000s) payoff table. Decision Alternatives States of Nature Low Medium High Small Condominium 400 400 400 Medium Condominium 100 600 600 Large Condominium -300 300 900 Based on this information, answer the following questions. (a) Given the payoff table, state the preferred outcomes under the maximin, maximax and minimax regret criteria. (3 marks) Suppose probabilities have been determined for the states of nature such that there is a 0.20 probability that there will be low demand, a 0.35 probability that that there will be medium demand, and a 0.45 probability that there will be high demand. (b) Compute the Expected Monetary Value (EMV) for each decision alternative. (3 marks) (c) Compute the Expected Opportunity Loss (EOL) for each decision alternative

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