The CEO must determine whether to build a small plant or a large plant for the company. The CEO believes that the profit made will depend on the level of future demand. The payoff table (in $) is as follows:

a. Compute the EMV for each action.What is the optimal action?

b. Compute the expected value of perfect information (EVPI).

c. Provide the interpretation of the EVPI.

The CED must determine whether to build a small plant or a large plant for the company. The CEO believes that the prot made will depend on the level of future demand. The payoff table (in $) is as follows: Action Event Probability Small plant Large plant High demand 0.65 270 380 Low demand 0.35 195 100 a. Compute the EMV for each action. What is the optimal action? b. Compute the expected value of perfect information (EVPI). c, Provide the interpretation of the EVPI