te the EVPI and show that it is the same as the minimum EOL. th imum pute 8-18. A hospital administrator in Portland is trying to determine whether to build a large wing onto the existing hospital , a small wing, or no wing at all. If the population of Portland continued to grow, a large wing could return $225,000 to the hospital each year. If the small wing were built, it would return $90,000 to the hospital each year if the population continued to grow. If the popula- tion of Portland remained the same, the hospital would encounter a loss of $125,000 if the large wing were built. Furthermore, a loss of $65,000 would be realized if the small wing were constructed and the population remained the same. It is unknown whether Portland's population will grow in the near future. (a) Construct a decision table. (b) Using the equally likely criterion, determine the best alternative. (c) The chairman of the hospital's board has advised using a coefficient of realism of 0.7 in determining the best alternative. What is the best deci- sion according to this criterion? Shag Runontrolle newsnaners on Sunday mornings in an area surrounded by 8-19 for 100 300 C D E F G H (b) Equally Likely Average Choice B. C 1 Problem 8-18 2 3 PAYOFFS Outcomes 4 Alternatives 5 Large wing 6 Small wing 7 No wing 8 9 10 11 12 13 14 15 16 17 18 (c) Hurwicz Realism Choice $0 $0 $0 a = 0.7