Question: 2. Refer to Problem 1. Suppose after a ceraain amount of discussion, the contractor is able to sublistively assess the probabilities of low and high

2. Refer to Problem 1. Suppose after a ceraain amount of discussion, the contractor is able to sublistively assess the probabilities of low and high demand: P( low )=3 and P( high )=7. a. Determine the expected profit of each alternative. Which alternative is bes? Why? b. Analyze the problem using a decision tree. Show the expected profit of each alternative on the tree. c. Compute the expected value of perfect information. How could the contractor use this knowledge

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