question six

b. Using Expected Monetary Value criterion, select the best decision. Select an answer v c. Find the expected value with perfect information. EVWPI = d. Determine the expected value of perfect information. EVPI = e. Please interpret EVPI. O EVPI is the usual amount the company would pay for additional information O EVPI is the average amount the company would pay for additional information O EVPI is the maximum amount the company would pay for additional information O EVPI is the minimum amount the company would pay for additional informationThe owner of the Humber Lakeshore Transport Company must decide among manufacturing 10 new transport trucks, manufacturing 20,000 new electric scooters, or leasing all their manufacturing equipment to another company. The profit that will result from each alternative will be determined by whether material costs remain stable, increase moderately, or increase significantly. The specialists calculated the likelihood for each possible level of material costs. In the payoff table below the estimated profit/losses are given in $thousands. Material Costs Moderate Significant Stable Increase Increase Transport 700 800 900 Decision Scooters 2000 500 -2450 Leasing 1820 1030 -180 Probability of State of 0.3 0.4 0.3 Nature a. Compute the expected monetary value for each decision: EMV(Transport) = EMV(Scooters) = EMV (Leasing) =