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The Institute for Futures Studies is deciding between two potential venues for its annual conference. The options are the Metroplex Hotel in Durbanville and the
The Institute for Futures Studies is deciding between two potential venues for its annual conference. The options are the Metroplex Hotel in Durbanville and the Seaboard College campus in Atlanticton. The Institutes profits from the conference depend on the venue costs as well as the number of delegates attending. The Metroplex Hotel will impose a minimum charge of in addition to a charge of for each delegate. Seaboard College will charge the Institute a minimum of plus charge per delegate. The Institute for Futures Studies will charge each delegate a conference fee regardless of the chosen venue. The number of delegates attending the conference will depend on the location. The probability distribution for the number of delegates attending at each location is shown below. The probabilities are based on the views of colleagues at the Institute, which are subjective.
Which location will maximise the profit for the Institute of Futures Studies?
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