Question: Question 5 1.5 p A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm's capacity. The contractor must

Question 5 1.5 p 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. The capacity alternatives are Do Nothing, Expand, and Subcontract. Estimated profit (in thousands) under each of the two possible states of nature (Low Demand, High Demand) are shown in the table below. Low Demand 51 Alternatives: Do Nothing Expand Subcontract High Demand 57 80 68 19 43 Suppose after a certain amount of discussion, the contractor is able to subjectively assess the probability of low demand as 51%, with high demand accounting for the remaining probability. What is the expected monetary value of the best alternative (in thousands)

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