Suppose that the management of Theme Park, Inc., has decided that there is a .35 probability that the motel's application will be approved.
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 advise management to sign the lease? The lease will cost $24,000.