St. Elmo's Fire Protection Services is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor, or using a combination of the vendor and its own staff. The cost of the operation will vary with future demand for the data processing. The annual cost of each option in thousands of dollars) is listed in the table below. Demand High Medium Low Own Stoff 650 650 600 Outside Vendor 900 600 300 Both 800 650 500 Probabilities 0.2 0.5 0.3 a) Using the optimistic criteria which alternative should St. Elmo's choose? Why? b) Using the pessimistic criteria which alternative should St. Elmo's choose? Why? c) Using the LaPlace criteria which alternative should St. Elmo's choose? Why? d) Using the Hurwicz criteria which alternative should St. Elmo's choose? Why? Assume that the criteria of realism is 0.3. e) Using the opportunity Loss Regret criteria which alternative should St. Elmo's choose? Why? f) Using the Expected Monetary Value (EV) criteria which alternative should St. Elmo's choose? Why? g) Using the Expected Opportunity Loss criteria which alternative should St. Elmo's choose? Why? h) What is the expected value of perfect information? i) You are offered an efficiency study that can reduce your costs by 13% but will cost you $45,000. Do you conduct the efficiency study? Why or why not? St. Elmo's Fire Protection Services is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor, or using a combination of the vendor and its own staff. The cost of the operation will vary with future demand for the data processing. The annual cost of each option in thousands of dollars) is listed in the table below. Demand High Medium Low Own Stoff 650 650 600 Outside Vendor 900 600 Both 800 650 500 Probabilities 0.2 0.5 0.3 300 a) Using the optimistic criteria which alternative should St. Elmo's choose? Why? b) Using the pessimistic criteria which alternative should St. Elmo's choose? Why? c) Using the LaPlace criteria which alternative should St. Elmo's choose? Why? d) Using the Hurwicz criteria which alternative should St. Elmo's choose? Why? Assume that the criteria of realism is 0.3. e) Using the opportunity Loss Regret criteria which alternative should St. Elmo's choose? Why? f) Using the Expected Monetary Value (EV) criteria which alternative should St. Elmo's choose? Why? g) Using the Expected Opportunity Loss criteria which alternative should St. Elmo's choose? Why? h) What is the expected value of perfect information? i) You are offered an efficiency study that can reduce your costs by 13% but will cost you $45,000. Do you conduct the efficiency study? Why or why not