market? strong Problem 1. (24 points) Consider the decision tree we constructed for IDEA in lecture. Assume that all of the data used in the example remain the same except for the probability of the market remaining weak or strong. Suppose that, instead of a 0.5 chance that the market is strong, the probability that the market is strong is now 0.6. For reference the decision tree from lecture is attached. Don't forget to make the proposed change before doing your calculations with no one 0 0 contract with? gross profit +150,000 150,000 0.5 with S 0 weak 0.5 gross profit +150,000 150,000 gross profit +500,000 450,000 market? with P -50,000 strong 0.5 weak 0.5 gross profit -250,000 |-300,000 (a) Given the probability that the market is strong is 0.6, what is IDEA's maxi-min decision? IDEA should choose no supplier. Choosing either Supplier Sor Supplier P would be worse. IDEA should choose Supplier P. Choosing either Supplier S or no supplier would be worse. IDEA should choose Supplier S. Choosing either Supplier Por no supplier would be worse. IDEA should choose either Supplier Sor Supplier P. Choosing no supplier would be worse. None of these (b) Given the probability that the market is strong is 0.6, what is IDEA's maxi-max decision? Choose Supplier P. Choosing either Supplier S or no supplier would be worse. Choose either Supplier S or Supplier P. Choosing no supplier would be worse. Choose Supplier S. Choosing either Supplier P or no supplier would be worse. Choose no supplier. Choosing either Supplier S or Supplier P would be worse. None of these (c) Given the probability that the market is strong is 0.6, what is IDEA's expected-value-maximizing decision? Choose Supplier P. Choosing either Supplier S or no supplier would be worse. Choose either Supplier S or Supplier P. Choosing no supplier would be worse. Choose no supplier. Choosing either Supplier S or Supplier P would be worse. Choose Supplier S. Choosing either Supplier P or no supplier would be worse. None of these