excel 36

Bob’s Bike Shop can expand his current shop, move to a larger location, or make no change.


With a good market, the payoff is $ 56,000 if he expands, $ 70,000 if he moves, and $ 30,000 if he does nothing.

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With an average market, his payoffs will be $ 21,000, $ 35,000 and $ 10,000 respectively.



With a poor market, his payoffs will be – $ 29,000 (loss), – $ 45,000 (loss) and $ 5,000 (profit) respectively.

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