Please answer peer response 1 with the above information provided

1. I am the business owner at ice cream palace. It is an ice cream truck that I stationed regularly at a high school parking lot. Business has been growing, and I'm thinking about expanding into our local town. 2. My three alternatives would be: 1. Expand fully to local area by adding 3 ice cream truck 2. Open up at the local mall 3. Do not expand The three states of nature would be 1. High demand 2. Medium demand 3. Low demand 3&4. On a really good day summer season, I can sell around $2000 worth of ice cream cone. When you include the salaries of the other employees, gas for truck and generator, along with food supplies, my net income is right around $1500. On a typical moderate day, I can sell around $1000 worth of ice cream cone, and with the $500 of expenses my net income would be around $500 On a typical poor day, I can sell around $400 worth of ice cream cone, and with $500 dollars of expenses my net loss is around $100. Here's my decision table. Awesome ice cream cone demand Moderate ice cream demand Poor ice cream cone de 3 New Truck 4500 1500 -900 Mall location 1000 500 -100 No Changes 0 0 0 1. I will choose to use the Optimistic and Criteria of Realism strategies. The Optimistic (Maximax) decision is to build 3 new carts with a possibly payoff of $800 per day. Awesome ice cream cone demand Moderate ice cream demand Poor ice cream cone de 3 New Truck 4500 1500 -900 1000 500 -100 Mall location No Changes 0 0 0 Alternative value Maxima 5100 I'm going to use a coefficient of realism of 0.75 for the Hurwicz Criteria. As a reminder, this implies I'll be 75% optimistic and 25% pessimistic - a middle ground between the optimistic and pessimistic approaches. Based on the choice strategy's alternative value of 5100, the Criteria of Realism decision is still to create three new carts. Alternative value Maxima 5100 I'm going to use a coefficient of realism of 0.75 for the Hurwicz Criteria. As a reminder, this implies I'll be 75% optimistic and 25% pessimistic a middle ground between the optimistic and pessimistic approaches. Based on the choice strategy's alternative value of 5100, the Criteria of Realism decision is still to create three new carts. Hurwicz Criteria Decision Process a= Awesome ice cream cone demand Moderate ice cream demand Poor ice cream cone de 3 New Truck 4500 1500 -900 Mall location 1000 500 -100 No Changes 0 0 These two options are the most cost-effective strategies for me to boost my profits. If I construct a completely new structure, I will have significantly more space, but it will take longer to break even due to the construction costs. Instead, I could buy a movable building for less money, but I'd have less space to earn more money. I understood that if I increased output, my costs would increase as well. My daily cost would grow just slightly if I increased production, but it would climb by 30% if I open the mall location. Then I had to figure out if my revenue would expand faster than my expenses. The new location would have a lot of foot traffic, therefore those were also decisive factors since it is at the mall. After examining all of the information, I've decided to open the mall location. With the earning from the other locations, I can manage open the mall location. I believe I will make more money at the mall. I will be able to handle it and grow my business. Peer Reply #1: Choose a classmate's post and review their decision analysis table. Add to their table by choosing a risk level for each state of nature (assign a probability value to each). See Example. 1. Calculate the EMV for each alternative. 2. Discuss which alternative is best based on the best (maximum) EMV. 3. Calculate the Expected Value with Perfect Information (EVwPI). 4. Calculate the EVPI. 5. Discuss how much money your classmate should pay for perfect information. 1. I am the business owner at ice cream palace. It is an ice cream truck that I stationed regularly at a high school parking lot. Business has been growing, and I'm thinking about expanding into our local town. 2. My three alternatives would be: 1. Expand fully to local area by adding 3 ice cream truck 2. Open up at the local mall 3. Do not expand The three states of nature would be 1. High demand 2. Medium demand 3. Low demand 3&4. On a really good day summer season, I can sell around $2000 worth of ice cream cone. When you include the salaries of the other employees, gas for truck and generator, along with food supplies, my net income is right around $1500. On a typical moderate day, I can sell around $1000 worth of ice cream cone, and with the $500 of expenses my net income would be around $500 On a typical poor day, I can sell around $400 worth of ice cream cone, and with $500 dollars of expenses my net loss is around $100. Here's my decision table. Awesome ice cream cone demand Moderate ice cream demand Poor ice cream cone de 3 New Truck 4500 1500 -900 Mall location 1000 500 -100 No Changes 0 0 0 1. I will choose to use the Optimistic and Criteria of Realism strategies. The Optimistic (Maximax) decision is to build 3 new carts with a possibly payoff of $800 per day. Awesome ice cream cone demand Moderate ice cream demand Poor ice cream cone de 3 New Truck 4500 1500 -900 1000 500 -100 Mall location No Changes 0 0 0 Alternative value Maxima 5100 I'm going to use a coefficient of realism of 0.75 for the Hurwicz Criteria. As a reminder, this implies I'll be 75% optimistic and 25% pessimistic - a middle ground between the optimistic and pessimistic approaches. Based on the choice strategy's alternative value of 5100, the Criteria of Realism decision is still to create three new carts. Alternative value Maxima 5100 I'm going to use a coefficient of realism of 0.75 for the Hurwicz Criteria. As a reminder, this implies I'll be 75% optimistic and 25% pessimistic a middle ground between the optimistic and pessimistic approaches. Based on the choice strategy's alternative value of 5100, the Criteria of Realism decision is still to create three new carts. Hurwicz Criteria Decision Process a= Awesome ice cream cone demand Moderate ice cream demand Poor ice cream cone de 3 New Truck 4500 1500 -900 Mall location 1000 500 -100 No Changes 0 0 These two options are the most cost-effective strategies for me to boost my profits. If I construct a completely new structure, I will have significantly more space, but it will take longer to break even due to the construction costs. Instead, I could buy a movable building for less money, but I'd have less space to earn more money. I understood that if I increased output, my costs would increase as well. My daily cost would grow just slightly if I increased production, but it would climb by 30% if I open the mall location. Then I had to figure out if my revenue would expand faster than my expenses. The new location would have a lot of foot traffic, therefore those were also decisive factors since it is at the mall. After examining all of the information, I've decided to open the mall location. With the earning from the other locations, I can manage open the mall location. I believe I will make more money at the mall. I will be able to handle it and grow my business. Peer Reply #1: Choose a classmate's post and review their decision analysis table. Add to their table by choosing a risk level for each state of nature (assign a probability value to each). See Example. 1. Calculate the EMV for each alternative. 2. Discuss which alternative is best based on the best (maximum) EMV. 3. Calculate the Expected Value with Perfect Information (EVwPI). 4. Calculate the EVPI. 5. Discuss how much money your classmate should pay for perfect information