Remember Bubbly Business Caf from previous homework? They are trying to decides should they open a second location, hire more people, or upgrade machines. Depending on UFV increases the tuition or not, they would have different payoffs. There is 25% chance that UFV will increase the tuition. The payoff table is as follows. Probability 0.25 0.75 Tuition Tuition Increase Same Open 2nd location Hire more people Upgrade machines $5 $3 $1 $7 $0 $4 Seeing how the Bubbly Business Caf was struggling to make a decision, a BUS 404 student, Dwite Shroot, offered to help if the Bubbly Business Caf would endorse him for "consulting skills" on Linke(Dundler Miffl)in. Dwite knows that a majority of the Bubble Business Caf's customers are international students whose finances depend on the strength of the Canadian dollar. Dwite will be able to provide the Bubbly Business Caf with forecasts about whether the Canadian dollar will appreciate (A$) or depreciate (D$), and since Dwite is a great salesman and forecaster, he has provided the Bubbly Business Caf some additional information on the accuracy of his forecasts: When UFV increases (Inc) its tuition, Dwite would have forecasted that the Canadian dollar depreciates 80% of the time. When UFV keeps tuition the same, Dwite would have forecasted that the Canadian dollar appreciates 60% of the time. QUESTION 4 Find the Expected Profit with Sample Information (EPSI), the Expected Value of Sample Information (EVSI), and the efficiency of sample information. Then, make recommendations the Bubbly Business Caf on how it should better meet demand based on Dwite's forecasts. Report the following to two decimal places: EPSI = $ million EVSI = $ million Efficiency = Help make business decision recommendations to the Bubbly Business Caf based on Dwite's forecasts. Type O if you recommend opening a second location on campus, type H if you recommend hiring more people to make more bubble tea, or type U if you recommend upgrading the machines to make bubble tea more quickly. If Dwite forecasts that the Canadian dollar will appreciate, the Bubbly Business Caf should If Dwite forecasts that the Canadian dollar will depreciate, the Bubbly Business Caf should QUESTION 5 Should the Bubbly Business Caf hire Dwite for his forecasting services in exchange for an endorsement? The Bubbly Business Caf v hire Dwite, because is greater than QUESTION 5 Should the Bubbly Business Caf hire Dwite for his forecasting services in exchange for an endorsement? The Bubbly Business Cafe hire Dwite, because is greater than should should not EPPI EVPI QUESTION 6 EVSI EMV Imagine that, instead of a for his forecasting service rsement for his consulting skills, Dwite requests that he be compe bly Business Caf still hire Dwite? zero