Problem 5S-2 (Static) A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm's capacity. The contractor must now make a decision on capacity for next year Estimated profits under each of the two possible states of nature are as shown in the table below. Suppose after a certain amount of discussion, the contractor is able to subjectively assess the probabilities of low and high demand: Pllow) = 3 and P(high) - 7. Alternative Do nothing Expand Subcontract NEXT YEAR'S DEMAND Low $50" 56 20 7e Profit in thousands --1. Determine the expected profit of each alternative. (Enter your answers in thousands) Answer is complete but not entirely correct. Expected Profit Do Nothing 3 1.300 thousands Expand 30 thousands Subcontract 70 thousands 6-2. Which alternative is best? Do nothing Expand Subcontract c. Compute the expected value of perfect information (Enter your answers in thousande.) Answer is complete but not entirely correct. EVPS thousands