Kipling Equipment Inc. must decide to produce either a face mask or a face shield to alleviate the spread of a quickly evolving coronavirus. The face mask is disposable and developing it could potentially lead to a profit of $230,000 if competition is high or a profit of $515,000 if competition is low. The face shield, on the other hand, is reusable and has the potential of generating a fixed profit of $438,000 irrespective of high or low competition. The probability of high competition is 43% while that of low competition is 57%. Part A a) What is the expected monetary value of the optimal decision? $ b) Based on expected monetary value, what should the Kipling do? Select an answer c) What is the upper bound on the amount Kipling should pay for additional information? $ Part B Kipling can pay for a market survey research to better assess future market conditions. There is a 0.76 chance that the survey will produce an encouraging report and a 0.24 chance that the report will be discouraging. Given an encouraging report, the probability of low competition is 0.39 while given a discouraging report, the probability of high competition is 0.27. a) If the market survey report is encouraging, what is the expected value of the optimal decision? $ b) If the market survey report is discouraging, what is the expected value of the optimal decision? $ c) What is the expected value with the sample information (EVWSI) by the market survey? $ d) What is the expected value of the sample information (EVSI) provided by the market survey? $ e) If the market survey costs $5,100, what is the best course of action for Kipling? Select an answer f) What is the efficiency of the sample information? Round % to 1 decimal place. % Kipling Equipment Inc. must decide to produce either a face mask or a face shield to alleviate the spread of a quickly evolving coronavirus. The face mask is disposable and developing it could potentially lead to a profit of $230,000 if competition is high or a profit of $515,000 if competition is low. The face shield, on the other hand, is reusable and has the potential of generating a fixed profit of $438,000 irrespective of high or low competition. The probability of high competition is 43% while that of low competition is 57%. Part A a) What is the expected monetary value of the optimal decision? $ b) Based on expected monetary value, what should the Kipling do? Select an answer c) What is the upper bound on the amount Kipling should pay for additional information? $ Part B Kipling can pay for a market survey research to better assess future market conditions. There is a 0.76 chance that the survey will produce an encouraging report and a 0.24 chance that the report will be discouraging. Given an encouraging report, the probability of low competition is 0.39 while given a discouraging report, the probability of high competition is 0.27. a) If the market survey report is encouraging, what is the expected value of the optimal decision? $ b) If the market survey report is discouraging, what is the expected value of the optimal decision? $ c) What is the expected value with the sample information (EVWSI) by the market survey? $ d) What is the expected value of the sample information (EVSI) provided by the market survey? $ e) If the market survey costs $5,100, what is the best course of action for Kipling? Select an answer f) What is the efficiency of the sample information? Round % to 1 decimal place. %