Question: 1. The CEO must determine whether to build a small plant or a large plant for the company. The CEO believes that the profit made

1. The CEO must determine whether to build a small plant

1. The CEO must determine whether to build a small plant or a large plant for the company. The CEO believes that the profit made will depend in the level of future demand. The payoff table (in $) is as follows: Event High Demand Low Demand Probability 0.65 0.35 Action Small Plant 270 195 Action Large Plant 480 100 a. Compute the EMV for each action b. Compute the expected value of perfect information (EVPI) C. Provide the interpretation of the EVPI

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