1.

- The owner of the Humber Lakeshore Construction Company must decide among building a condo, constructing a shopping centre, or leasing all the company's 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 Shopping Centre a. Compute the expected monetary value for each decision: b. Using Expected Monetary Value criterion, select the best decision. Select an answer c. Find the expected value with perfect information. d. Determine the expected value of perfect information. e. Please interpret EVPI. .. EVPI is the minimum amount the company would pay for additional information -~ EVPI is the usual amount the company would pay for additional information -~ EVPI is the average amount the company would pay for additional information n EVPI is the maximum amount the company would pay for additional information