Question: 1. Sarada and Sunitha are childhood friends. They entered in to the same college with same specialization. They are going to graduate with degrees

1. Sarada and Sunitha are childhood friends. They entered in to the

1. Sarada and Sunitha are childhood friends. They entered in to the same college with same specialization. They are going to graduate with degrees in Marketing. After their graduation to get experience they both decided to start a small company that would provide word processing services to students who needed to prepare their reports in a professional manner. Using a systems approach Sarada and Sunitha have identified three strategies. These strategies along with the payoffs are listed in the table below: Favorable Market Strategies Unfavorable market Strategy 1 10,000+ 7 Strategy 2 5,000+2 Strategy 3 2,000+ 7 It is also known that the probability of Favorable market condition is 60% -7000+ 2 -2000+ 7 300 a. What type of decision environment is it, Explain about that environment? b. What will be the decision of Sarada and Sunitha? c. Compute the expected value of perfect information?

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