This report analyses the issues that Oceanview Development Corporation is facing with regards to their endeavor to bid for the property that will be sold by sealed bid at a county tax foreclosure. The two pivotal points of chance events are whether Oceanview will have the highest bid and if the referendum for the zoning change will be rejected by the voters. This is of utmost importance to Oceanview because the acceptance of the bid will require a follow up from the corporation. Otherwise, Oceanview will have a deficit of 10% of the bid as a form of penalty.

Hence, Oceanview is at the dilemma of choice on the employment of a market research firm, who is capable of producing a detailed report on the sentiments of a zoning change, which is thereby valuable with respect to the decision that the corporation has to make.

The purpose of this case study is to recommend Oceanview on the employment of the market research firm, and weigh the cost of the research with the expected value of the information provided by them.

This will be achieved step by step with a decision tree that succinctly displays the sequence of the bidding process. Next, the possibility of entering the bid without the market research information will be explored thoroughly via various mechanisms like Optimistic and Conservative Approaches. To form a comparison for a clearer picture, the branch of conducting a market research will be analyzed. And finally, a recommendation to the employment of the market research firm will be decided by the results of the aforementioned analysis.

1.2 Findings

Upon analysis of the data calculations, we concur that the optimal decision that is available to Oceanview is to bid for the property. This is supported with concrete information derived from several methods that, points only to the outcome of bidding for the property.

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With regards to the branch of having the availability of market research, our team has concluded that while it is an optimal approach to bid for the project when the zoning change approval is favorable, the best decision to make for an unfavorable outcome of the market research is not to bid for the property.

We further concluded that by weighing the cost of the market research with the expected value of the data that can be achieved, it is ultimately a wise choice to employ the firm so as to extract more information about the zoning change.

Lastly, recommendations will be given as to how we can integrate such a method of decision analysis in other businesses as well.

2. Data Collation

2.1 Decision Tree

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