make a decision about where to locate a distribution centre. You can locate the centre in the north, south, east or west. Demand for centre space could be low or high. If you locate in the north and demand is low you could see an EMV of $20,000, if demand is high you will see an EMV of $80, 000. Locating in the south will see an EMV of $15,000 with low demand and an EMV of $70,000 if demand is high. Locating in the east you will see an EMV of $10,000 with low demand and an EMV of $55,000 with high demand. If you locate in the west and demand is low you will see $30,000 in EMV and if demand is high the EMV will be $78,000. The probability that centre demand will be low is 0.3 and the probability of high demand is 0.7. Where should the centre be located to maximize EMV and what is the EMV value?

	1	north, EMV = $80,000
	2	west, EMV = $108,000
	3	south, EMV = $125,000
	4	west, EMV = $63,600