A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm's capac The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nat 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( low )=3 and P( high )=7. * Profit in $ thousands. a-1. Determine the expected profit of each alternative. (Enter your answers in thousands.) 0.2. Which alternative is best? Do nothing Expand Subcontract c. Compute the expected value of perfect information. (Enter your answers in thousands.)