8. (5 points) - The air conditioning manufacturer JC Inc. described in problem \#7 has seen tremendous growth of demand in the Lakeland area and is considering building a new facility. JC Inc. has three decision alternatives available: - D1: build a small facility - D2: build a medium facility - D3: build a large facility The annual profits expressed in millions of dollars, for each of these decision alternatives are estimated: - Small facility: $7.5 if demand is strong and $6.0 if demand is weak - Medium facility: $13.0 if demand is strong and $4.0 if demand is weak - Large facility: $21.0 if demand is strong and $5.5 if demand is weak The probability for the state-of-natures: - Strong demand (S1): 0.25 - Weak demand (S2): 0.75 a. (0.5 points) - Create a payoff table for the JC Inc. New Facility Project. b. ( 0.5 points) - Create a decision tree with state-of-nature branch probabilities. c. (1.5 point) - Based on the expected value for the decision alternatives, provide a recommendation to JC Inc. d. (1.5 point) - Would your recommendation change if the probability for the state-of-natures would change to: - Strong demand (S1): 0.50 - Weak demand (S2): 0.50 e. (1.0 point) - Provide a combination for state-of-natures probability that would justify JC Inc. building a large facility. Demonstrate all considerations steps of your calculations that justify it. UPLOAD THE EXCEL SPREADSHEET FOR ALL CALCULATION IN ORDER TO GET POINTS FOR THIS