Bakery Products is considering the introduction of a new line of products. In order to produce the new line, the bakery is considering either a major or minor renovation of the current plant. Bakery Products has the option of not developing the new line at all. The decision alternatives are shown in the payoff table below as well as the states of nature and probabilities. Payoffs are profits; States of Nature with Profits ($) Decision Alternatives Major Renovation Favourable (F) $10,000 Minor Renovation $5,000 Do Nothing Probability $0 0.3 Neutral Market (U) Unfavourable (U) $4,000 - $9,000 $2,000 - $2,000 $0 $0 0.4 0.3 Before making the final decision, Bakery Products can pay a market research firm $500.00 to survey consumer attitudes towards the company's products. The results can be either "vibrant" or "limp". The reliability of the company, based on past performance, is given below. Survey Results Vibrant (V) Limp (L) Favourable (F) 0.80 0.20 Conditional Probability For A Given state of nature Neutral Market (N) 0.60 0.40 Unfavourable (U) 0.30 0.70 That is: P(V|F)=0.80;P(V|N) = 0.60;P(V|U) = 0.30; P(L|F) = 0.20;P(L|N) = 0.40;P(L|U) = 0.70; After you have computed the revised probabilities round to two decimal places a) Construct the appropriate decision tree to help Bakery products make the appropriate decisions. This tree must be constructed in logical order with labels and net payoffs (5 marks) It also includes the revised probabilities (5 marks) (10 marks) b) Fold back the decision tree (5 marks) to determine the best strategy for the bakery; you must state this strategy (1 mark). What is the final expected profit?( 1 mark) (7 marks) c) What is the expected value of sample information (EVSI)- the most that the survey values?( 1 mark)