1. The Wastegold Limited is involved with waste management. During the past 10 years it has become one of the largest waste disposal companies in the Delhi NCR and adjoining areas. Bobby Singh, the CEO of the company, is considering the possibility of establishing a waste treatment plant near Sonepat. From past experience, Bobby believes that a small plant in Sonepat would yield a 5,00,00,000 profit regardless of the market for the facility. The success of a medium-sized waste treatment plant would depend on the market. With a low demand for waste treatment, Bobby expects a 2,00,00,000 return. A medium demand would yield a 7,00,00,000 return in Bobby's estimation, and a high demand would return 8,00,00,000. Although a large facility is much riskier, the potential return is much greater. With a high demand for waste treatment in Delhi NCR, the large facility should return 10,00,00,000. With a medium demand, the large facility will retum only 4,00,00,000. Bobby estimates that the large facility would be a big loser if there were a low demand for waste treatment. He estimates that he would lose approximately 2,00,00,000 with a large treatment facility if demand were indeed low. Looking at the economic conditions for the adjoining areas and using his experience in the field, Bobby estimates that the probability of a low demand for treatment plants is 0.15 . The probability for a medium-demand facility is approximately 0.40 , and the probability of a high demand for a waste treatment facility is 0.45 . Because of the large potential investment and the possibility of a loss, Bobby has decided to hire a market research team that is based in Gurugram. Haryana. This team will perform a survey to get a better feeling for the probability of a low, medium, or high demand for a waste treatment facility. The cost of the survey is 5,00,000. To help Bobby determine whether to go ahead with the survey, the marketing research firm has provided Bobby with the following information (Table 1): \begin{tabular}{|l|c|c|c|} \hline \multirow{2}{*}{Possibleoutcome} & \multicolumn{3}{|c|}{ Survey results } \\ \cline { 2 - 4 } & Depressed outlook & Constant outlook & Upbeat outlook \\ \hline Low Demand & 0.7 & 0.2 & 0.1 \\ \hline Medium Demand & 0.4 & 0.5 & 0.1 \\ \hline High Demand & 0.1 & 0.3 & 0.6 \\ \hline \end{tabular} Table 1: Prob(survey results | possible outcomes) (i) Should Wastegold establish a small, medium or large waste treatment plant? (ii) Should Bobby Sigh take the help of market research team? 1. The Wastegold Limited is involved with waste management. During the past 10 years it has become one of the largest waste disposal companies in the Delhi NCR and adjoining areas. Bobby Singh, the CEO of the company, is considering the possibility of establishing a waste treatment plant near Sonepat. From past experience, Bobby believes that a small plant in Sonepat would yield a 5,00,00,000 profit regardless of the market for the facility. The success of a medium-sized waste treatment plant would depend on the market. With a low demand for waste treatment, Bobby expects a 2,00,00,000 return. A medium demand would yield a 7,00,00,000 return in Bobby's estimation, and a high demand would return 8,00,00,000. Although a large facility is much riskier, the potential return is much greater. With a high demand for waste treatment in Delhi NCR, the large facility should return 10,00,00,000. With a medium demand, the large facility will retum only 4,00,00,000. Bobby estimates that the large facility would be a big loser if there were a low demand for waste treatment. He estimates that he would lose approximately 2,00,00,000 with a large treatment facility if demand were indeed low. Looking at the economic conditions for the adjoining areas and using his experience in the field, Bobby estimates that the probability of a low demand for treatment plants is 0.15 . The probability for a medium-demand facility is approximately 0.40 , and the probability of a high demand for a waste treatment facility is 0.45 . Because of the large potential investment and the possibility of a loss, Bobby has decided to hire a market research team that is based in Gurugram. Haryana. This team will perform a survey to get a better feeling for the probability of a low, medium, or high demand for a waste treatment facility. The cost of the survey is 5,00,000. To help Bobby determine whether to go ahead with the survey, the marketing research firm has provided Bobby with the following information (Table 1): \begin{tabular}{|l|c|c|c|} \hline \multirow{2}{*}{Possibleoutcome} & \multicolumn{3}{|c|}{ Survey results } \\ \cline { 2 - 4 } & Depressed outlook & Constant outlook & Upbeat outlook \\ \hline Low Demand & 0.7 & 0.2 & 0.1 \\ \hline Medium Demand & 0.4 & 0.5 & 0.1 \\ \hline High Demand & 0.1 & 0.3 & 0.6 \\ \hline \end{tabular} Table 1: Prob(survey results | possible outcomes) (i) Should Wastegold establish a small, medium or large waste treatment plant? (ii) Should Bobby Sigh take the help of market research team