Question: 21) An operations manager's staff has compiled the information below for four manufacturing alternatives (E, F, G, and H) that vary by production technology and

21) An operations manager's staff has compiled
21) An operations manager's staff has compiled the information below for four manufacturing alternatives (E, F, G, and H) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. Forecasts indicate that there is a 0.1 probability of acceptance level 1, 0.2 chance of acceptance level 2, 0.4 chance of acceptance level 3, and 0.3 change of acceptance level 4. States of Nature 1234 Alternative E SO 50 70 60 Alternative F 30 50 80 130 Alternative G70 80 70 60 Alternative H-140-10 150220 Using the criterion of expected monetary value, which production alternative should be chosen? 22) What is the expected value of perfect information of the following decision table? States of Nature Alternatives S1 S2 Option 1 Option 2 200 50 300 350 A) 0 B) 20 C) 50 D) 150 E) 200

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