Problem 1 (5 POINTS) Given the following cost table: Next Year's Demand Alternative Low High Do nothing $60* $70 Expand 25 75 Subcontract 35 60 *Costs in $ thousands (a) Use (1) Maxim ax: (1) Maxim in: (1) Laplace; and (iv) Minim ax regret criteria to choose the best alterative decision. (2.5 points) Suppose after a certain amount of discussion, the contractoris able to subjectively assess the probabilities of low and high demand: P(low) = 0.45 and P(high) = 0.55 6) Determine the expected cost (EV) of each decision. Which decision is best? (1 point) (c) Compute the expected value of perfect information. (1.5 points)