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Chris, a small business owner, has identified a store site in a shopping mall in Atlanta. The mall owner offered him to alternatives: one location with 10,000 square feet and the other with 15,000 square feet. If he chooses the larger space, he estimates that the store will make a $200,000 annual profit when the economy is strong. However, if the economy is normal or poor, the profit will be only $100,000 or $40,000 respectively. With the smaller store, he estimates the annual profit at $150,000 with a good economy, $100,000 with a normal one and $50,000 with a poor one. Economists predict that there is a 10% probability of a boom, an 80% chance of a normal economy, and a 10% chance of a poor one in the coming year. Which alternative is better for Chris to maximize his store profit?
1.On a daily basis, the Vampire Van is dispatched from Maplewood Hospital to pickup blood and platelet donations made at its local donation centers. The distances in miles between all locations may be found in Table.
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