Director of legal services of ABC Company must decide whether to hire another full-time lawyer or to hire part-time lawyers. Anticipated costs for the two options under three possible demand levels are given in the table below: States of Nature High Alternatives Low Demand Medium Demand Demand Hire full-time $900 $800 $100 Hire part- $800 $300 $600 time Probabilities 0.45 0.5 0.05 What is the EMV of the best decision? Specify only the amount. e.g. 350 Answer: Given the following payoff table, determine the appropriate decision using the maxi-min rule. States of Nature Favorable Average Unfavorable Alternatives Market Market Market Build new plant $80,000 $40,000 $30,000 Subcontract $70,000 $50,000 $60,000 Overtime $45,000 $60,000 $40,000 Select one: a. Build new plant b. Subcontract c. Overtime Given the following payoff table, determine the appropriate decision using the maxi-max rule. States of Nature Favorable Average Unfavorable Alternatives Market Market Market $350,000 $240,000 $10,000 Build new plant Subcontract $80,000 $390,000 $30,000 Overtime $110,000 $160,000 $315,000 Do nothing $0 $0 $0 Select one: o a. Build new plant b. Subcontract c. Overtime d. Do nothing