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Suppose a hotel chain would like to build a facility near a new regional airport that is going to be constructed Unfortunately, however, the local...

This question was answered on Jan 20, 2013. View the Answer
Fill in the eight values in this table? Please see attached.
Suppose a hotel chain would like to build a facility near a new regional airport that is going to be  constructed Unfortunately, however, the local politicos haven't yet decided between two possible  sites, which we will designate as A and B. The hotel chain wants to purchase land now, even  though the final decision hasn't been made, since the real-estate market is depressed, and rumors  concerning a possible forthcoming decision are beginning to cause prices in both areas to rise.  The chain must decide between four possible courses of action: buy a tract near location A; buy a  tract near location B; buy tracts near both locations, do neither. If the chain does build a facility near what turns out to be the eventual airport site, it stands to  earn a tidy sum. If however, it buys a tract that turns out to be nowhere near the airport, it will  eventually have to sell the tract for a loss. The relevant financial data appear in the following  table: Let's start off by deriving a payoff matrix, that is, a table indicating the chain's earnings or losses  under each of the four possible strategies in both possible airport location scenarios: Fill in the eight values in this table?
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Suppose a hotel chain would like to build a facility near a new regional airport that is going to be constructed Unfortunately, however, the local politicos haven't yet decided between two possible...

This question was asked on Jan 17, 2013 and answered on Jan 20, 2013.

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