MAT 540 Week 2 Homework

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. A local real estate investor in Orlando is considering three
alternative investments; a motel, a
restaurant, or a theater. Profits from the motel or restaurant will be
affected by the availability of
gasoline and the number of tourists; profits from the theater will be
relatively stable under any
conditions. The following payoff table shows the profit or loss that
could result from each
investment:
2. A concessions manager at the Tech versus A&M football game must
decide whether to have the vendors sell sun visors or umbrellas. There
is a 35% chance of rain, a 25% chance of overcast skies, and a 40%
chance of sunshine, according to the weather forecast in college
junction, where the game is to be held. The manager estimates that the
following profits will result from each decision, given each set of
weather conditions:

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