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Southern Homes Inc. is a home builder located in a suburb of Atlanta. The company must decide whether to leave its model homes unfurnished, furnish

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Southern Homes Inc. is a home builder located in a suburb of Atlanta. The company must decide whether to leave its model homes unfurnished, furnish them partially, or completely furnish them using a custom decorator. The new-home market is generally quite profitable, but Southern is suffering cash flow problems. The table below gives the expected profit (in $100s) per lot for Southern Homes based on how Southern furnishes its model homes and the overall demand for housing in the Atlanta market Model Furnishing Weak Housing Market Moderate Strong_Very Strong 10 20 30 Unfurnished 4 Partial Furnishing -30 8 35 60 15 25 95 Full Furnishing -60 Suppose some information is available about the housing market in Atlanta in the form of probabilities. Specifically, suppose the probability of a weak housing market is 0.20, the probability of a moderate housing market is 0.30, the probability of a strong housing market is 0.40, and the probability of a very strong housing market 0.10 Using the expected Value Approach, what will the decision be? Full or Partial furnishing Full or Partial furnishing Partial furnishing Full furnishing O Unfurnished

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