Markov Chains and Decision Analysis

3. The XY Manufacturing Company must decide whether to manufacture a component part at its plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in ten thousand of pesos):

State of Nature Low Demand Medium Demand High Demand Decision Alternative 51 $2 $3 Manufacture, d -100 200 500 Purchase, dz 50 225 350