Phalaborwa Development Corporation (PDC) has purchased land thatwill be the site of a new luxury double storey complex. Thelocation provides a spectacular view of the surroundingcountryside, including mountains and rivers. PDC plans to price theindividual units between R300 000 and R1 400 000.
PDC has commissioned preliminary architectural drawings for threedifferent projects: one with 30 units, one with 60 units and onewith 90 units. The financial success of the project depends uponthe size of the complex and the chance event concerning the demandfor the units.
The decision problem is stated as follows: Select the size of thenew complex that will lead to
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