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Question

Janice is trying to decide between buying, renting, leasing and sharing a space for her proposed

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flower shop. She believes that four possible demand states are possible: low, moderately low,


moderately high, and high demand for flowers. Monthly profits for each space and demand


state are given in the table below.



Low Mod Low Mod High High


Rent - 200 375 300 350


Buy - 250 275 300 325


Share - 225 350 350 300


Lease - 400 300 250 225


which would an optimistic person choose?

which would a conservative person choose?

maximax?

maximin?

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