Volkswagen Germany plans to manufacture six of its models for the next near. Its manufacturing facility can produce Polo, Vento, Ameo, GTI, Tiguan, and Passat. Though it produces all these models, it wants to focus only on the car with the highest sales. It has learnt from economists that the market conditions in the coming year will have three mutually exclusive outcomes: Recession, Moderate, and Growth, with respective probabilities as 0.30, 0.25, and 0.45. Volkswagen has the following data that show how many cars it sold (in thousands) when similar conditions existed in the past.

a. Using the expected value approach, which car will you suggest Volkswagen to focus on?
b. Find the expected opportunity loss value.

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Model/Probability Polo Vento Ameo GTI Tiguan Passat Recession 0.30 25 38 40 36 40 25 Moderate 0.25 18 24 16 25 20 21 Growth 0.45 45 46 38 28 44 30