1. A manager has learned that annual profits from four alternatives being considered for solving a capacity problem are projected to be $15,000 for A,$30,000 for B,$45,000 for C, and $60,000 for D if state of nature 1 occurs; and $60,000 for A,$80,000 for B,$90,000 for C, and $35,000 for D if state of nature 2 occurs. a. Assuming maximax is used, what alternative would be chosen? b. Assuming maximin is used, what alternative would be chosen? c. Assuming equally likely is used, what alternative would be chosen? d. If the probability of Nature 1 is .40 and the probability of Nature 2 is 0.6 , which alternative should be chosen? 2. The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop: The probability of low demand is 0.4 , whereas the probability of high demand is 0.6 . a. What is the highest possible expected monetary value? b. What is the expected value with perfect information (EVwPI)? c. Calculate the expected value of perfect information for this situation. 3. A manager has developed a table of conditional values for the various alternatives (stocking decisions) and states of nature (size of crowd): If the probabilities associated with the states of nature are 0.3 for a large crowd, 0.5 for an average crowd, and 0.2 for a small crowd, determine: a. The alternative that provides the greatest expected monetary value (EMV). b. The expected value of perfect information (EVPI)