Question: please to write clearly. Thank you 2. A manager has compiled estimated profits for various capacity alternatives but is reluctant to assign probabilities to the

please to write clearly. Thank you
please to write clearly. Thank you 2. A manager
2. A manager has compiled estimated profits for various capacity alternatives but is reluctant to assign probabilities to the states of nature. The payoff table is: STATE OF NATURE #1 #2 A $20* 140 120 80 Alternative B C 100 40 *In $ thousands. a. Plot the expected-value lines on a graph. b. Is there any alternative that would never be appropriate in terms of maximizing expected profit? Explain on the basis of your graph. c. For what range of P(#2) would alternative A be the best choice if the goal is to maximize expected profit? 20 marks

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