Contractor (s2rev) 2 3 DO A small building contractor has recently experienced two years in a row in which work opportunities exceeded the firm's capacity The contractor must now make a decision on capacity for next year Estimated profits under each of the two possible states of nature are as shown in the table below Suppose after a certain amount of discussion, the contractor is able to subjectively assess the probabilities of tow and high demand. P flow - 3 and high- NEXT YEARS High Alternative Do nothing Expand * Profit in thousands --1. Determine the expected profit (EMV) of each itemlive. (Enter your answers in thousands Omit the "S" sign in your response) pector Do nothing End Subcontract thousand 1 Help Save & Exh Sul HW Supp5 - Decision Theory $50 560 2 Alternative Do nothing Expand Subrotract Profit in thousands --1. Determine the expected profit (EMV) of each alternative. (Enter your answers in thousands Omit the "S" sign in your response) 3 pots Do Nothing pand Subcontract Expected Profit $ thousand 5 5 thousand .-2. Which alternative is best? Do nothing Expand Subcontract c. Compute the expected value of perfect information (Enter your answers in thousands Omit the "S" sign in your response) EVP $ thousand