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Chris Suit is administrator for Lowell Hospital. She is trying to determine whether to build a large wing on the existing hospital, a small wing,
Chris Suit is administrator for Lowell Hospital. She is trying to determine whether to build a large wing on the existing hospital, a small wing, or no wing at all. If the population of Lowell continues to grow, a large wing could return $150 to the hospital each year. If a small wing were built, it would return $60 to the hospital each year if the population continues to grow. If the population of Lowell remains the same, the hospital would encounter a loss of $85 with a large wing and a loss of $45 with a small wing. If the likelihood of growth is 0.6 and that of remaining the same is 0.4, what is EMV of large wing? Select one: O a. $18 O b. $56 O c. $66 O d. $2 O e. $72 If each state of nature has the same likelihood, what is the best alternative? Select one: O a. to build small wing O b. to build large wing O c. do not build
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