1. ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000's) based on next year's demand are shown in the table below. Next Year's Demand Alternative Low Medium High Expand $100 $200 $250 Subcontract $50 $120 $125 Do Nothing $40 $50 $ 55 a. Which alternative should be chosen based on the maximax criterion? b. Which alternative should be chosen based on the maximin criterion? c. Which alternative should be chosen based on the Lapalce criterion? d. Which alternative should be chosen based on criterion of realism with alpha = 0.7? e. Which alternative should be chosen based on the minimax regret criterion? 2. Refer to problem 1. Assume that ABC Inc. has hired a marketing research firm that provided additional information regarding next year's demand. Suppose that the probabilities of low and high demand are assessed as follows: P(Low) = 0.3, P(Medium)=0.3 and P(High) = 0.4. a. Which alternative should be chosen using the expected monetary value (EMV) criterion? b. What is the expected value under perfect information (EVPI)? c. Develop a Decision tree for this