Myrtle Air Express decided to offer direct service om Cleveland to Myrtle Beach. Management must decide between a ull price ervice using the company's new fleet of jet s rcra and a discount service using smaller capacity commuter plenes. It s clear that the best choice depends on the market reaction to the service Myrtle Air offers, Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service to Myrtle Beach: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars): Service Full price Discount Demand for Service Strong Weak 1440 -$700 s970 S480 a. What is the decision to be made, what is the chanca avant, and what is the consoquance for this problem? The input in the box belowr will not be graded, but may be reviewed and considered by your instructor How many decision alternatives are thera? Number of decision alternatives - How many outcomes are there for the chance event? b. If nothing is known about the probabilities of the chance outcomes, what is the recommended decision using the optimistic, conservative and minimax regret approaches? Optimistic approsch Conservative approach Minimax regret approach Options are: Full price service, or Discount service Options are: Full price service, or Discount service Options are: Full price service, or Discount service c. Suppose that management of Myrtle Air Express believes that the probability of strong demand is 0.7 and the probability of weak demand is 0.3. Use the expected value approach to determine an optimal decision. Optimal Decision Options are: Full price service, or Discount service d. Suppose that the probability of strong demand is 0.8 and the probability of weak demand is 0.2. What is the optimal decision using the expected value approach? Optimal Decision Options are: Full price service, or Discount service e. Use graphical sensitivity analysis to determine the range of demand probabilities for which each of the decision alternatives has the largest expected value. If required, round your answer to four decimal places. is the best choice if probability of strong demand iz less than or equalbo Options are: Full price service, or Discount service