excel

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.

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.