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The construction manager for ABC Construction must decide whether to build single family homes, apartments, or condominiums. He estimates annual profits (in $000) will vary
The construction manager for ABC Construction 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: If he uses Bayes' decision rule, which kind of dwellings will he decide to build?
Type | Declining | Stable | Growing |
Single family | 200 | 90 | 70 |
apartments | 70 | 170 | 90 |
condos | -20 | 100 | 220 |
prior probability | 0.4 | 0.5 | 0.1 |
a. single family
b. apartments
c. condos
d. either single family or apartments
e. either apartments or condos
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