Problem 1. The following is the payoff matrix for two alternate plans. Assume the probability of the market being receptive is known to be 0.65 (thus, probability of the market being unfavorable is 0.35). a. Draw a decision tree. b. Compute the EMV for each of the plans and recommend a plan (a or b). c. Determine the expected value of perfect information (EVPI). d. At what probabilities of states of nature S, and S2 would the EMV(d) = $30.000? e. At what probabilities of states of nature S, and S2 would you be indifferent between in plan a or plan b? Probabilities Decision Alternatives Pla Plan b 0.65 0.35 Market Receptive Market Unfavorable Si $40,000 $12.000 $50,000 $6,000 S2