2 Contractor (s2rev) 3 A small building contractor has recently experienced two years in a row in which work opportunities exceeded the firm's capacity. The contractor must now make a decision on capacity for next year Estimated profils under each of the two possible states of nature are as shown in the table below. Suppose after a certain amount of discussion, the contractor is able to subjectively assess the probabilities of low and high demand. P Dow) 3 and Phi NEXT YEARS DEMAND Alternative Do nothing Expand Subcontract 70 Profit in thousands --1. Determine the expected profit (EMV) of each alternative. (Enter your answers in thousands Omit the "s' sign in your response) Expected Pro Do nothing Expand Se 350 20 40 5 5 thousand thousand thousand Subcontract 560 2 350 20 40 70 Alternative Do nothing Expand Subcontract Profit in thousands 0-1. Determine the expected profit (EMV) of each alternative. (Enter your answers in thousands. Omit the "3" sign in your response.) Expected Porn Do Nothing 5 thousand Expand thousand Subcontract thousand 3 points Beck --2. Which alternative is best? Do nothing Expand Subcontract c. Compute the expected value of perfect information (Enter your answers in thousands Omit the "5" sign in your response) EVP thousand Help Save & ER Submit Amusement Park (sbrev) 3 3 points The land lease for Amusement Parks, Inc. is about to expure Park management must decide whether to renew the lease for another 10 years or relocate closer to the site of a proposed motel The town planning board is currently debating the merits of granting approval to the motel A consultant has estimated the net present value of Theme Park's two alternatives under each state of nature shown in the table below What course of action would you recommend to the park management team? Hotel Motel Options Approved Rejected $ 500,000 $4,000,000 Relocate 5.000.000 100,00 Book References - Maximin Renew Relocate Help Save & Eat a. Maximin 3 Renew Relocate 3 Doints b M WHIPH% eBook Deferences Relocate Renew c. Laplace Relocate Renew 2 Contractor (s2rev) 3 A small building contractor has recently experienced two years in a row in which work opportunities exceeded the firm's capacity. The contractor must now make a decision on capacity for next year Estimated profils under each of the two possible states of nature are as shown in the table below. Suppose after a certain amount of discussion, the contractor is able to subjectively assess the probabilities of low and high demand. P Dow) 3 and Phi NEXT YEARS DEMAND Alternative Do nothing Expand Subcontract 70 Profit in thousands --1. Determine the expected profit (EMV) of each alternative. (Enter your answers in thousands Omit the "s' sign in your response) Expected Pro Do nothing Expand Se 350 20 40 5 5 thousand thousand thousand Subcontract 560 2 350 20 40 70 Alternative Do nothing Expand Subcontract Profit in thousands 0-1. Determine the expected profit (EMV) of each alternative. (Enter your answers in thousands. Omit the "3" sign in your response.) Expected Porn Do Nothing 5 thousand Expand thousand Subcontract thousand 3 points Beck --2. Which alternative is best? Do nothing Expand Subcontract c. Compute the expected value of perfect information (Enter your answers in thousands Omit the "5" sign in your response) EVP thousand Help Save & ER Submit Amusement Park (sbrev) 3 3 points The land lease for Amusement Parks, Inc. is about to expure Park management must decide whether to renew the lease for another 10 years or relocate closer to the site of a proposed motel The town planning board is currently debating the merits of granting approval to the motel A consultant has estimated the net present value of Theme Park's two alternatives under each state of nature shown in the table below What course of action would you recommend to the park management team? Hotel Motel Options Approved Rejected $ 500,000 $4,000,000 Relocate 5.000.000 100,00 Book References - Maximin Renew Relocate Help Save & Eat a. Maximin 3 Renew Relocate 3 Doints b M WHIPH% eBook Deferences Relocate Renew c. Laplace Relocate Renew