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


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?



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