Question: Consider the following payoff table and probabilities for the states of nature: a. Choose the best alternative using decision making under risk. b. What is

Consider the following payoff table and probabilities for the states of nature:

Consider the following payoff table and probabilities for the states

a. Choose the best alternative using decision making under risk.
b. What is the expected value of perfect information?

Demand Level Alternative $400 $900 S1,500 $200 $1,100 1,800 -$900 $1,200 $2,700 0.30 0.25 0.45 Probability

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