2) Alocal transportationcompany decided to offer direct service from Whistler to downtown Vancouver Management must decide between a full-price service using the comparty's new fleet of full capacity bus and a discount service using smaller capacity vans. It is clear that thebest choice depends on the market reaction to the service they offer Management developed estimates of the cortribution to profit for each type of service based upon twopossible levels of demand for service to downtown Vancouver: strong andweak The followingtable shows the estimated monthly profits (in dollars): Service Full Price Discount Demand for service Strong 450 310 Weak -50 30 a. If nothingis known about the probabilities of the chance outcomes, what is the recommended decisionusing the Optimistic, conservative, and minimax regret approaches? (6 marks) b. Suppose that management of this local transportation company believes that the probability of strong demand is 0.65 and the probability of weak demandis 635. Use the expected value approach to determine an optimal decision (6 marks) What is the expected value of the perfectinformation? (2 marks)