Question: HiEd has to decide on construction of new dorms. They can build a small dorm or a large dorm. They could also decide to build nothing at all. The impact on HiEd’s net revenue is given in the table below:
|Big Increase||Small Increase||Decrease|
a) If HiEd takes an optimistic approach, what should they do?
b) If HiEd takes a pessimistic approach, what should they do?
c) An educational consultant reports that there is a 40% chance of a small enrollment increase and a 10% chance of a large increase in enrollment. What should HiEd do?