Add to their table by choosing a risk level for each state of nature $($assign a probability value to each$).$

Calculate and state the expected monetary value $($EMV$)$ for each alternative.

Discuss which alternative is best based on the maximum EMV.

Calculate and state the expected value with perfect information $($EVwPI$).$

Calculate and state the expected value of perfect information $($EVPI$).$

Discuss the most money your classmate should pay for perfect information.Decisions, Decisions, Decisions!

Laing Furniture has been

manufacturing wooden furniture products for

over $10$ years. The business operates from a

single manufacturing facility. I, the founder,

am considering producing and selling a new

product line of office$/$corporate furniture

because there could be a sizable market for

such products. The decision will be whether

to start producing office furniture on a small

scale, large scale, or not at all.

As part of the six steps in decision

making, it is important to consider the

alternatives and states of nature for the

decision $($Hawkes$,2019).$ The three

alternatives include small$-$scale production,

large$-$scale production, or no production. The

three states of nature include high demand,

moderate demand, and low demand for office

furniture.

If Laing Furniture was to initiate the

production of this new product line on a large

scale, it is estimated that the company wouldDecisions, Decisions, Decisions!

Laing Furniture has been

manufacturing wooden furniture products for

over $10$ years. The business operates from a

single manufacturing facility. I, the founder,

am considering producing and selling a new

product line of office$/$corporate furniture

because there could be a sizable market for

such products. The decision will be whether

to start producing office furniture on a small

scale, large scale, or not at all.

As part of the six steps in decision

making, it is important to consider the

alternatives and states of nature for the

decision $($Hawkes$,2019).$ The three

alternatives include small$-$scale production,

large$-$scale production, or no production. The

three states of nature include high demand,

moderate demand, and low demand for office

furniture.

If Laing Furniture was to initiate the

production of this new product line on a large

scale, it is estimated that the company would$\backslash$table$[[,$A$,$B$,,],[1,,$Decision Table,$],[2,,,$State$],[3,$Alternatives,High Demand,Moder,,$],[4,$Large$-$Scale production,$$22500\mathrm{.}00,$$$,,],[5,$small$-$Scale Production,$$,10000\mathrm{.}00,$$$,],[6,$No production,$$,-,$$$,],[7,,,,,]]$