Chapt 14 case property purchase

Chapt 14 case property purchase - Solutions to Case...

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Solutions to Case Problems Chapter 14 Decision Analysis Case Problem 1: Property Purchase Strategy The decision tree for the Oceanview decision problem is shown below. Note that the final outcome of whether the zoning change is approved or rejected by the voters occurs of Oceanview decides to bid and then wins the bid. Otherwise, the outcome of the vote on the zoning change does not enter into the problem. * Payoff values are the profit computed from the given revenue, property cost, construction expenses, property cost deposit and marketing research cost given in the problem. CP - 67 9 6 Bid Do Not Bid Not Highest Bid Highest Bid Zoning Approved Zoning Rejected 10 7 Bid Do Not Bid Not Highest Bid Highest Bid Zoning Approved Zoning Rejected 4 11 8 2 5 3 1 Market Research No Market Research Predicts Approval Predicts Rejection Bid Do Not Bid Not Highest Bid Highest Bid Zoning Approved Zoning Rejected Payoff* 1,985,000 -515,000 -15,000 -15,000 1,985,000 -515,000 -15,000 -15,000 2,000,000 -500,000 0 0
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This note was uploaded on 04/20/2010 for the course IE ie200 taught by Professor . during the Spring '10 term at 카이스트, 한국과학기술원.

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Chapt 14 case property purchase - Solutions to Case...

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