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5. Given the following payoff table with profit values and probabilities: States of Nature Decision Alternatives Low Demand, SI High Demand, 52 Make Product, di

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5. Given the following payoff table with profit values and probabilities: States of Nature Decision Alternatives Low Demand, SI High Demand, 52 Make Product, di -$ 20,000 $ 90,000 Buy Product, d2 $ 10,000 $ 70,000 Do Nothing, d3 $ 5,000 $ 5,000 Probability 0.25 0.75 The optimal solution, for these values and probabilities, is to Buy Product (dz) with EVwoPI = $55,000, based on: EVwoPI = $55,000, based on: EV(Make) = $12,500 62,500 Best EV(Buy) $55,000

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