Case Problem Checkup

During the semester you will write a four to eight page paper analyzing the case problem PROPERTY PURCHASE STRATEGY on page 148 of the text.  Your final paper will take the form of a report or memo to President Glenn Foreman.

You do not yet know all you will need to solve the problem completely, but you can get started by turning in answers to the following questions:

  1. List the decision alternatives for this problem.









  3. List the chance events.









  5. Create a timeline showing all the chance and decision events in order.










  6. What are the best and worst possible payoffs? Explain what has to happen to get these payoffs.









  8. Use Bayes' Theorem to find the posterior probability of a zoning change approval (event s1 on p. 149) in the event that the survey predicts the change will be approved (event A).