Question: 9. (10 points) A manager's staff has compiled the information below which pertains to four capacity alternatives under four states of nature. Values in the

9. (10 points) A manager's staff has compiled the

9. (10 points) A manager's staff has compiled the information below which pertains to four capacity alternatives under four states of nature. Values in the matrix are present value in thousands of dollars. 2 30 Alternative 1 50 40 30 20 4 40 35 A B D 30 3 20 30 35 35 30 30 25 30 (a) Assuming a Minimax Regret strategy, which alternative would be chosen?- (b) If Maximin were used, which alternative would be chosen? (c) The states of nature have been assessed from historical data and have the following probabilities of occurring: P(1)=0.3, P(2)=0.4, P(3)=0.2, P(4)=0.1. If an expected monetary value criterion of maximization is used, what is the expected value of perfect information?H

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