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Section C: Decision Analysis (Worth 25 marks) SMART Infrastructure Facility is a research Institute at the University of Wollongong. SMART brings together experts from fields such as transport and modelling and simulation, to help goverments and business better plan for the future. SMART has submitted a proposal to the Australian Research Council (ACR) grant scheme. SMART will need two new academic staff for managing the proposed project. The proposal is a two-month project and each academic will work 40 hours/week. The salary rate for their position is $50/hour. There are two possible outcomes for the submission: granted or not granted. If the proposal is granted, SMART will receive $200,000 for covering purchase of necessary equipment ($100,000) and academic staff costs. If the proposal is not funded, the University will give SMART $80,000 plus the necessary equipment for the project. SMART wants to start this project before the outcome of the grant is released. C.1. Identify the possible alternativos, the possible states of nature, and build a decision table. (5 marks) C.2. If SMART adopts the Laplace criterion, what alternative should the research Institute choose? (3 marks) C.3. If SMART adopts the Maximax criterion, what alternative should It choose? (3 marks) C.4. Assume that there is an 80% chance that SMART will recelve the grant. What alternative should SMART choose if it adopts the Expected Opportunity Loss approach for choosing an alternative? (7 marks) C.5. Assume that SMART does not know the probabilities of the possible outcomes. Then, create a graph, expected payoff (y-axis) versus probability of SMART receiving the grant (x-axis). Find the crossover point in the designed graph. What does this point show? (7 marks)