QUESTION 2 Expected value theory is important to identify the potential value of each option. Assume that the fashion designer has assigned probabilities to the occurrences of various states of nature. Determine which option will be selected by the fashion designer. Alternatives State of nature strategies High demand Moderate demand Low demand Probability 0.8 0.5 0.2 Maxi skirts RM90,000 RM75,500 -RM54,600 Midi skirts RM112,700 RM68,000 -RM30,800 Mini skirts RM85,420 RM58,660 -RM45,250 (10 marks) QUESTION 3 Explain one method of risk assessment with one example of scenario. (10 marks)