Question: Problem 2 Alternatives Possible Future Payoff Low demand {0.3) Moderate demand (0.4} High demand (0.3) Small facility $8 Moderate facility 4 10 10 Large facility

Problem 2 Alternatives Possible Future Payoff Low

Problem 2 Alternatives Possible Future Payoff Low demand {0.3) Moderate demand (0.4} High demand (0.3) Small facility $8 Moderate facility 4 10 10 Large facility (2) 6 16 $8 $8 a) From the information in the above payoff table, determine the minimum Expected Opportunity Loss (EOL). b) Based on your solution in (a) above, what is the Expected Value of Perfect Information (EVPI)? c) Determine EVPI by using the following formula: EVPI = EV Where EV denotes Expected Value and EMV demotes Expected Monitory Value Note: In (c), show how you obtain the value for EV with perfect and the value for EMV 2 with perfect information EMV information

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