Jenna Chen manages a flower shop. Jenna is considering three alternatives under different levels of demand. These three alternatives are: order small, order

medium, and order large. Possible levels of demand are low, medium, or high. The following table

gives the net profit for each decision alternative under each possible demand level:

a$.$ Which decision alternative should Jenna select using the MAXIMAX approach? What is the

corresponding profit?

b$.$ Which decision alternative should Jenna select using the MAXIMIN approach? What is the

corresponding profit?

c$.$ Which decision alternative should Jenna select using the Laplace $($or equally likely$)$ approach?

What is the corresponding profit?

Jenna has estimated probabilities of demand levels as below:

$P($ low $)=0\mathrm{.}25$;$P($ medium $)=0\mathrm{.}55$; and $P($ high $)=0\mathrm{.}20$

d$.$ Construct a decision tree for this problem.

e$.$ If the maximum expected monetary value $($EMV$)$ is used as the decision criterion, which decision

alternative should Jenna select? What is the corresponding expected profit?

$[14$ points$]$