P$1)$ The payoff table shows prospective profits and losses for a company, depending on what

decision $(d_1$ through $d_4)$ is made and what state of nature occurs and $\{$:$s_3).$ The relative

likelihood of each possible state of nature is indicated at the bottom of table.

Decision d$1$: Make in house

d$2$: Outsource

$d3$ : Implement a hybrid strategy

$d4$ : Sell the rights to commercialize the product

Sate of nature $,s1$ : High cost of capital $($above $7\mathrm{.}5\%)$

s$2$: Moderate cost of capital $($between $4\mathrm{.}5\%$ and $7\mathrm{.}4\%)$

s$3$: Low cost of capital $($less than $4\mathrm{.}5\%)$

Use the information above to determine:

a$.$ What the company should do if an optimistic strategy is used $($Maximax$).$

b$.$ What the company should do if a conservative strategy is used $($Maximin$).$

c$.$ What the company should do if a minimax regret strategy is used.

d$.$ What is the expected value of the best decision if the expected value approach is used?

e$.$ What is the payoff of alternative $d3$ when the expected monetary value $($EV$)$ strategy is used

f$.$ What is the expected value of perfect information $($EVPI$)?$