2. (50') The contractor is reviewing the construction project progress on October 1. The contract completion date is Oct 30. The National Weather Service (NWS) has issued a hurricane warning with three potential states of natures in the next following days. O State of Nature A: No hurricane P(A) = 60% State of Nature B: Minor hurricane P(B) = 35% State of Nature C: Major hurricane P(C) = 5% If weather is good without any loss of time, the job will be completed on Oct 30. However, if there is a minor hurricane, the project will be delayed by five days. Also, if there is a major hurricane, the project will be delayed by 10 days. You may want to consider three options below: Crashing Plan 1: Increasing the project resources by 30%. This allows us to complete the project on time, whatever the weather conditions. However, this will add $5,000 per day until the project completion Crashing Plan 2: Applying the hurricane mitigation plan of $50,000. This allows us to save 3 days on minor hurricane and 6 days saving on major hurricane. Maintain the normal schedule Liquidate damage is $50,000 per day on the first 3 days and $100,000 per day after. Please have the decision tree and make your decision). You can see the table below and calculate the loss for each state of nature in each alternative. Alternative C1 (Crash 1) C2 (Crash 2) N (Normal) A (no hurricane) Loss (State of Nature) B (Minor hurricane) C (Major Hurricane)

contractcompletion date is Oct 30. The National Weather Service (NWS) has issued a hurricane waming with three potential states of natures in the next following days. - State of Nature A: No hurricane P(A)=60% - State of Nature B: Minor hurricane P(B)=35% - State of Nature C: Major hurricane P(C)=5% If weather is good without any loss of time, the job will be completed on Oct 30. However, if there is a minor hurricane, the project will be delayed by five days. Also, if there is a major hurricane, the project will be delayed by 10 days. You may want to consider three options below: - Crashing Plan 1: Increasing the project resources by 30%. This allows us to complete the project on time, whatever the weather conditions. However, this will add $5.000 per day until the project completion - Crashing Plan 2: Applying the hurricane mitigation plan of $50,000. This Yllows us to save 3 days on minor hurricane and 6 days saving on major hurricane. - Maintain the normal schedule Liquidate damage is $50,000 per day on the first 3 days and $100.000 per day after. Please have the decision tree and make your decision). You can see the table below and calculate the loss for each state of nature in each alternative