Question 1 A. The owner of This-yah Restaurant is considering three options for a facility next year. She can expand her current shop, move to a larger facility or make no change. Her decision will be guided by the information below: This-yah Restaurant Payoff Table Payoffs are Profits States of Nature (Market) Decision Favorable Average Unfavorable Alternatives Expand 56,000 21,000 - $29 000 Move 70,000 35,000 -$45 000 No Change 30,000 10,000 $5 000 i. Which option would be best if she uses the Laplace criterion? (4 marks) ii. If a Maximax approach is used, what alternative should be adopted? (3 marks) iii. If the probability of a favorable market is 25%, that of an average market, 45%, and of an unfavorable market, 30%, and EMV is used, what should be her option? What is that optimal expected value? (4 marks) iv. What is the most that the owner would be willing to pay for additional information? Use Minimum Expected Regret (Minimum EOL). (5 marks) V. Use the alternative method to verify EVPI