Question 2 An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, and C) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The three states of nature represent three levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. States of Nature (Possible outcomes) Level 1 Level 2 Level 3 50 55 60 Alternative A Alternative B Alternative C a) If Maximin strategy were used, which would be chosen? 30 -100 50 -10 b) Assuming a Maximax strategy, which alternative would be chosen? Alternative A Alternative B Alternative C Level 1 80 150 c) Assuming a Minimax Regret strategy, which alternative would be chosen? (You can use the following regret (or opportunity loss) table to help you answer the question) Regrets Level 2 Robert Jones Operations MGMT June 24, 2022 Level 3 I d) If the states of nature were equally likely (Laplace Criterion), which alternative should be chosen? e) Forecasts indicate that there is a 0.3 probability of acceptance level 1, 0.2 chance of acceptance level 2, and 0.5 change of acceptance level 3. Using the criterion of expected monetary value which production alternative should be chosen