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The Academy of Forecasting has to decide on a location for its annual symposium. Two locations are being considered: the Heraton hotel in New York and the campus of Atlantic University. The profit that the academy will earn from the symposium depends on the cost of the location and the number of delegates attending. The cost to the Academy of holding the symposium at the Heraton will be a fixed charge of $14000 plus and extra $100 per delegate. The Atlantic University will charge $10,000 plus an extra $120 per delegate. Delegates will pay $300 to attend the symposium, irrespective of which location is chosen. The number of delegates attending the symposium is likely to depend on the location. For simplicity, subjective probability distributions for the number of delegates attending at each location have been approximated by the three-point distributions shown below.
Heraton hotel Atlantic University
No. of delegates Probability No. of delegates Probability
50 0.2 40 0.4 100 0.5 100 0.5 150 0.3 160 0.1
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