Section B: Decision Making Techniques (Total Marks: 33 marks) Question 5 (6 marks) A theatre has a seating capacity of 1,000 people and is considering engaging a small concert performance (for popular singer(s) and/or orchestra) for one night only. The fee that would be charged for small concert performance would be fixed and this sum is payable regardless of the size of the theatre audience. Based on past experience of events of this type, the price of the theatre ticket would be $1,250. The size of the audience for this event is uncertain, but based on past experience it is expected to be as follows: Probability 600 people 50% 800 people 30% 1000 people 20% In addition to the sale of the theatre tickets, it can be expected that members of the audience will also purchase confectionery both prior to the performance and during the interval. The contribution that would yield to the theatre is unclear, but has been estimated as follows: Contribution from confectionery sales Probability Contribution of $50 per person 30% Contribution of $100 per person 50% Contribution of $200 per person 20% Required: Based on expected value analysis, what will be the maximum fee that can be quoted for the small concert performance