$2.$ The operations manager for a local bus company wants to decide whether he should purchase

a small, medium, or large new bus for his company. He estimates that the annual profits

$($in $$000)$ will vary depending upon whether passenger demand is low, medium, or high, as

follows:

Demand

Low Medium High

Small $506070$

Medium $408090$

Large $2050120$

in $ thousands.

REGRET Demand

Low Medium High

Small $02050$

Medium $10030$

Large $30300$

in $ thousands.

a$)$ If he uses the minimax regret, which size bus will he decide to purchase?

Max Regret $=\{50,30,30\},$ Minimax Regret

$>$ Medium or Large

b$)$ If he feels the chances of low, normal, and high precipitation are $30$ percent, $20$ percent,

and $50$ percent respectively, What is the EVPI?