The Dollar Department Store Chain Has the Opportunity of Acquiring

question 39

Short Answer

The Dollar Department Store chain has the opportunity of acquiring 3,5,or 10 leases from the bankrupt Granite Variety Store chain.Dollar estimates the profit potential of the leases depends on the state of the economy over the next five years.There are four possible states of the economy as modeled by Dollar Department Stores,and its president estimates P(s₁)= 0.4,P(s₂)= 0.3,P(s₃)= 0.1,and P(s₄)= 0.2.The utility has also been estimated.Given the payoffs (in $1,000,000s)and utility values below,which decision should Dollar make?
​ ​ ​

---

Definitions:

Ileostomy

A surgical opening from the ileum onto the abdominal wall.

Ileum

The last section of the small intestine.

Chyme

The semi-fluid mass of partly digested food that is passed from the stomach to the small intestine for further digestion.

Small Intestine

The part of the digestive tract that absorbs nutrients and minerals from food, extending from the stomach to the large intestine.