Question 23 (10 points) The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new bus for his company. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, medium, or high, as follows: Profit Low Moderate High Small 50 60 70 Medium 40 75 90 Large 30 55 120 Regret Low Moderate High Small 0 15 (X) Medium 100 (Y) Large 20 20 0 Complete the regret table. What would be the regret amounts? Type in X and Y respectively. Question 24 (5 points) (Continued from the previous problem) If the manager uses the minimal regret, which bus will he decide to purchase? Doesn't matter. All options give the same result. Large Small Medium Question 25 (10 points) (Continued from the previous problem) If the manager feels the chances of low, moderate, and high demands are 20%, 50 %, and 30 % respectively. What is the EVPI(Expected value of perfect information)? Question 26 (2 points) The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. How many cords of wood would he have to split with this machine to break even? 2,000 4,000 1,500 3,000