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Covina Inc. produces cases of frozen food products. Each case contains an assortment of frozen Quebec, Canada. vegetables and other frozen farm products. The company has initiated an expansion project to expand in Financial Data The production cost: $17 per case, Profit: $7 per case per case If each facility produces more than what the market requires, the cases are disposed of to a landfill site at $2 each case. The expansion facilities will produce up to their maximum capacity. The company has committed to satisfy the market demand up to its full production capacity at each of its facilities. Options and Market Demand Options Supply FAC 2 Demand 950 900 1,000 850 FAC 1 950 1050 Probability 0.20 0 25 0.25 0 20 0. 10 FAC 3 1100 The CEO of the company, a 40+ year veteran in the frozen food business has made the company one of the largest companies by implementing conservative policies aiming at minimizing business losses as opposed to maximizing profits and wants to continue with this approach for this project as well. The CEO has hired you as the project manager to recommend what type of facility to build. Based on the above information: 1. Estimate the decision (payoff) table for this problem. (30 Marks) 2. Using the Optimistic criterion: (4 marks) a. What do you recommend? b. What will be the payoff value? 3. Using the Pessimistic criterion (4 marks) a. What do you recommend? b. What will be the payoff value? 4. Using the criterion of Realism, alpha = 0.25 (4 marks) a. What do you recommend? b. What will be the payoff value? 5. Criterion: Decisions under risk (4 marks) a. What do you recommend? b. What will be the payoff value