Question: Help would be much appreciated, Thanks! Wave Tech is considering starting either a small, regular, or large tech store in Detroit. The type of store

Help would be much appreciated, Thanks!

 Help would be much appreciated, Thanks! Wave Tech is considering startingeither a small, regular, or large tech store in Detroit. The type

Wave Tech is considering starting either a small, regular, or large tech store in Detroit. The type of store they open depends on the city's market potential which may be high with 20% chance, medium with 20% chance, or low with 60% chance. The potential profits (\$) in each case are shown in the payoff table below. Wave Tech is now considering hiring ALBION consultants for information regarding the city's market potential. ALBION Consultants will give either a favourable (F) or unfavourable (U) report. The probability of ALBION giving a favourable report is 0.4. If ALBION gives a favourable report, the probability of high market potential is 0.4 while the probability of a low market potential is 0.12. If ALBION gives an unfavourable report, the probability of high market potential is 0.16 and that of low market potential 0.8. 1. If ALBION gives a favourable report, what is the expected value of the optimal decision? Wave Tech is considering starting either a small, regular, or large tech store in Detroit. The type of store they open depends on the city's market potential which may be high with 20% chance, medium with 20% chance, or low with 60% chance. The potential profits (\$) in each case are shown in the payoff table below. Wave Tech is now considering hiring ALBION consultants for information regarding the city's market potential. ALBION Consultants will give either a favourable (F) or unfavourable (U) report. The probability of ALBION giving a favourable report is 0.4. If ALBION gives a favourable report, the probability of high market potential is 0.4 while the probability of a low market potential is 0.12. If ALBION gives an unfavourable report, the probability of high market potential is 0.16 and that of low market potential 0.8. 1. If ALBION gives a favourable report, what is the expected value of the optimal decision

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