A)

just answer part A please

Pauline the Painter is considering whether to bid for painting a fence in Calgary. Naturally, the homeowner may ask a competitor to bid for the project. The bids are delivered independently so no company knows what the others are bidding. Pauline the Painter is considering bidding $1,600, $1,900, or $2,200 (or perhaps not bidding at all) on this job. The homeowner will choose the lowest bid (or Pauline's if they are the same). Pauline the Painter estimates that it will cost $75 to prepare a bid and material costs of $850 if she wins the contract (she will pay herself out of the profit for her labour). Based on past contracts of this type, Pauline the Painter believes the possible low bids from the competition, if there is any competition, and the associated probabilities are those shown in the table below. In addition, Pauline the Painter believes there is a 14% chance that there will be no competing bids. Competitors' Bid Amount (if any) Probability Less than $1,600 0.20 Greater than or equal to $1,600 but less than $1,900 0.28 Greater than or equal to $1,900 but less than $2,200 0.40 Greater than or equal to $2,200 0.12 To calculate the values in the blue cells for Maximax use the cell reference names (such as prep_bid & matcost) and logic to determine the profit for Pauline the Painter in each cell. Don't use "if" statements. The values will fill in the other 3 spreadsheets. For the following 4 parts, complete them by using Excel and efficient cell formulas (cell references for profits including prepare bid and labour & cost cell names, SUMPRODUCT, MAX and VLOOKUP would be examples). No statement is necessary for the choice in each case. If you are submitting it in Excel you can just submit the file. If you choose to copy your spreadsheets into Word you will also need to submit the formulas for Question 1. a) Calculate the MAXIMAX value and determine the bid decision (fill in the template). Briefly state the monetary risk in this approach. (Not just high risk, high return. Consider the most likely scenario that could happen.) b) Calculate the MAXIMIN value and determine the bid decision (fill in the template). Briefly state the monetary opportunity cost in this approach. (Not just low risk, low return. Consider what happens with this strategy.) c) Calculate the MINIMAX regret value and determine the bid decision (fill in the template). Use the cell name references for the column maximum values. d) Calculate the EMV by calculating the joint probabilities with the information given above and determine the bid decision (fill in the template). Also calculate the EVPI (use the MAX Excel function for EV with PI). Cost to Prepare Bid Material Cost $75 $850 Payoff Table Pauline Painting Bids: No bid $1,600 $1,900 $2,200 NO Competitor $1,900