Case study (40 marks total) A company must decide whether to expand or do nothing. The company estimates the future profit loss based on the future demand, represented by Table 1. Table 1. Estimated profit by the company Decision Alternative outcomes Expand Do Nothing Future Demand Low High - $15,000 $20,000 SO The probabilities of Low and High demand are: P(Low)=0.6 and P(High) = 0.4% Tasks 1. Using the initial tree, what is the optimal decision alternative? Select one of the options 2. Using the initial tree, what is the maximum EMV? Type a number only. 3. For a better estimation, the company can also estimate the future demand by hiring a market research firm for a cost of $2,000. If this estimation is positive, the chance of High demand P(High) changes to 0.7. If the estimation is negative, the company will do nothing. The probability that the outsourced estimation is positive is estimated at 0.8. a Update the decision tree to include the results of the estimation decision, there is no Avenue question related to this task, but you need the information from it to complete the next tasks. 4. With estimation, what is the optimal decision alternative if the estimation is positive? Select one of the options 5. With estimation, indicate the overall expected profit or loss for the company. Type a number only 6. What would you recommend to the company should they pay for the estimation or not? Select one of the options