(a) Get info. If favorable, build. 0.6
If unfavorable, don’t build. Success
Expected return = $29,200. $100
0.9
Success
$29.20 $0 62 0.1
0.6 Failure
Favorable -$100
0.2
-$20 $29.20 Success
0.4 Failure
Unfavorable –$100
Problem 8-44