ABC Inc. must make a decision on its current capacity for next year. Estimated profits $($in $$000$s$)$ based on next year's demand are shown in the table below.

Next Year's Demand

Alternative Low High

Expand $$100$ $$200$

Subcontract $$50$ $$120$

Do nothing $$40$ $$50$

Refer to the information above. Assume that ABC Inc. has hired a marketing research firm that provided additional information regarding next year's demand. Suppose that the probabilities of low and high demand are assessed as follows: P$($Low$)=0\mathrm{.}4$ and P$($High$)=0\mathrm{.}6.$

Which alternative should be chosen using the expected monetary value $($EMV$)$ criterion?

Question $10$ options:

Subcontract

Do nothing

Expand