Question: Alternatives Small facility Moderate facility Large facility Low demand (0.3) $8 4 (2) Possible Future Payoff Moderate demand (0.4} $8 10 6 High demand (0.3)

Alternatives Small facility Moderate facility

Alternatives Small facility Moderate facility Large facility Low demand (0.3) $8 4 (2) Possible Future Payoff Moderate demand (0.4} $8 10 6 High demand (0.3) $8 10 16 a) From the information in the above payoff table, determine the determine the best alternative using Laplace's criterion. b) Determine the minimum Expected Opportunity Loss (EOL) using the information in the above payoff table. c) Based on your solution in (b) above, what is the Expected Value of Perfect Information (EVPI)? d) In this payoff table, given that the probability that there will be low demand is 0.4, and that there will be high demand is 0.2. Calculate the EMV. e) Determine EVPI by using the following formula: EVPI = EV.vist perfect information - EMV Where EV denotes Expected Value and EMV demotes Expected Monitory Value Note: In (e), show how you obtain the value for EVwith perfect inferovation, and the value for EMV

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