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

Problem 2 Alternatives Small facility Moderate

Problem 2 Alternatives Small facility Moderate facility | Large facility Low demand {0.3) $8 4 (2) Possible Future Payoff Moderate demand (0.4} $8 10 High demand (0.3) $8 10 16 6 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 with perfect information -EMV Where EV denotes Expected Value and EMV demotes Expected Monitory Value Note: In (c), show how you obtain the value for EV with perfect information and the value for EMV

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