1. Suppose that the management of Theme Park, Inc., has decided that three is a .35 probability that the motel's application will be approved. Chapter 5 Supplement, problem

a. If management uses maximum expected monetary value as the decision criterion, which alternative should it choose?

b. Represent this problem in the form of a decision tree

c. If management has been offered the option of a temporary lease while the town planning board considers the motel's application, would you advice management to sign the lease? The lease will cost $24,000