1. 

(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. o Decision: Mega Centre Decision: New Stores Decision: Leasing (d) Which of the following formulae is correct? EVPI = max EMV EVPI = max EOL O EVPI = min EMV O EVPI = min EOL- The owner of the Party City Toronto Company must decide among building a mega centre store, building 5 new stores, or leasing 10 of their locations 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. The specialists calculated the likelihood for each possible level of material costs. In the payoff table below the estimated profitllosses are given in $thousands. Material Costs Moderate Increase Significant Increase Mega Centre 840 1000 1800 1040 -130 Leasing Probability of State 0 3 of Nature (a) Construct Opportunity Loss {Regret} Table. M aterial Costs \" Moderate Increase Significant In crease Probability of State of Nature (b) Compute the expected opportunity loss value for each decision