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Kelly Weeks, president of Weeks Manufacturing, Inc., is considering whether to build more manufacturing plants in Wisconsin. Her decision is summarized in the following table:
Kelly Weeks, president of Weeks Manufacturing, Inc., is considering whether to build more manufacturing plants in Wisconsin. Her decision is summarized in the following table: ALTERNATIVES FAVORABLE MARKET ($) UNFAVORABLE MARKET ($) Build a large plant 425,000 -275,000 Build a small plant 75,000 -15,000 Dont build 0 0 Probabilities 0.4 0.6 a) Construct an opportunity loss table. b) Determine EOL and the best strategy. c) What is the expected value of perfect information?
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