1.The owner of the Long Branch Computer Hardware Company must decide among building 100 servers, building 5000 hard drives, or leasing all their 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. In the payoff table below the estimated profits/losses are given in$thousands.

(b) Determine the best decision using the Opportunity Loss decision criterion. (3 Decision: Leasing based on min = 60 (3 Decision: Scooters based on 1180 = min(3500,1180,1270) O Decision: Transport based on 3500 = max(3500,1180,1270) CT Decision: Transport based on 3900 = min(1480,3900,1330) . Compute the expected monetary value for each decision: W.) . Using Expected Monetary Value criterion, select the best decision. Select an answer 0 . Find the expected value with perfect information. . Determine the expected value of perfect information. d. Determine the expected value of perfect information. e. Please interpret EVPI. A- EVPI is the usual amount the company would pay for additional information A EVPI is the average amount the company would pay for additional information A EVPI is the maximum amount the company would pay for additional information A EVPI is the minimum amount the company would pay for additional information Material Costs Moderate Increase Significant Increase Mega 2250 2300 1820 1040 150 Leasing 800 1010 Probability of State 0 3 of Nature (a) Construct Opportunity Loss (Regret) Table. Material Costs Moderate increase Significant Increase Leasing Probability of State of Nature (b) Compute the expected opportunity loss value for each decision. EOL(Mega Centre) = EOL(New Stores) = EOL(Leasing) = (c) Select the best decision using EOL criterion. Decision: Leasing Decision: New Stores Decision: Mega Centre (d) Which of the following formulae is correct? EVPI = max EMV EVPI = min EMV - EVPI = min EOL EVPI = max EOL