CITY QUESTION 1 [25 MARKS] The Agra business model is rooted in agriculture. They value their significant contribution to the economy and most importantly towards food security in Namibia. Agra has been one of the pillars of the agricultural community of Namibia since its inception in 1980, operating as a market driven business within the retail industry. Rooted in Agriculture, Agra has developed a vast network of branches over Namibia, some 4 300 shareholders and more than 800 employees and has certainly established itself as a significant Namibian business. Agra is a specialist distributor of products to the retail sector of Namibia, and have sole distribution rights to a wide range of products including water equipment, pesticides and fertilisers, animal health products and feeds, hardware and gardening supplies and equestrian accessories Agra wants to decide which commodity to stock to get maximum profit. It was supplied with the following information. The probability that the monsoon will be excess, normal, and deficient is 0.40, 0.30 and 0.30 respectively. The estimated profit or loss of the three commodities in respect of these different kinds of monsoon are: Profit per 1 ton Monsoon Excess Normal Deficient Rice 10 000 (4 000) 15 000 Wheat 4 000 3 000) 8 000 Maize 4 000 1 000 (1 000) REQUIRED: Determine the optimal decision under each of the following decision criteria and show |MARKS how you arrived at it: a Maximax 3 b Maximin 3 C Minimax regret 7 d) Expected Monetary Value (EMV) 6 e) Expected Value of Perfect Information (EVPI) 6 TOTAL 25