C Spreadsheet Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, whereas the advanced model is faster but costs more. Profitability will depend on future demand. The following table presents an estimate of profits over the next three years. Decision Basic model Advanced model Demand Volume Low $75,000 $35,000 Medium $105,000 $105,000 High $175,000 $230,000 Fill in the table below for maximum and minimum profit payoffs under each model. Round your answers to the nearest dollar. Decision alternative Minimum Maximum Basic model $ Advanced model $ $ $ Calculate the amounts foregone by not adopting the optimal course of action for each possible demand level. Determine the maximum opportunity cost for each model. Fill in the table below. If your answer is zero, enter "0". Round your answers to the nearest dollar. Opportunity Loss Matrix Future events Decision alternative Low Medium High Maximum Basic model $ $ $ $ Advanced model $ $ $ Given the uncertainty associated with the demand volume, and no other information to work with, what decision would you make? The aggressive strategy (maximax) is to choose the -Select- The conservative strategy (maximin) is to choose the -Select- The opportunity loss strategy is to choose the -Select- Decision Analysis Enter the data only in the yellow cells. This template is designed to allow up to 5 decision alternatives and future events. OCengage Learning Not for commercial use. Enter names of decision alternatives and future events in the appropriate cells in column A or K and row 7. Probabilities are optional. Payoff Table Decision Alternative Future Events Low Product Demand High Product Demand Expand existing plant $200,000.00 Build new plant $100,000.00 $300,000.00 $450,000.00 Maximum Minimum Expected $300,000.00 $200,000.00 $450,000.00 $100,000.00 Probability Opportunity Loss Matrix Decision Alternative Expand existing plant Build new plant Future Events Low Product Demand High Product Demand $0.00 $100,000.00 $150,000.00 $0.00 Maximax Decision Maximin Decision Opportunity Loss Decision Expected Value Decision EVPI Build new plant Expand existing plant Build new plant A A Maximum Expected Value Maximum $150,000.00 $100,000.00 B