The CEO of Lucky Petroleum Co. has been considering to open a new gasoline statioin. He must decide how large the stattion should be. The annual returns (IDR billions) will depend on both the size of the station and market factor. After a careful analysis he developed the following table:

a.Compute the expected value of each alternative size of station, and select the best decision.

b.Construct the opportunity loss table and determine the best decision.

c.Compute the expected value of perfect information.

AutoSave O Off) Soal 15 Nov (1) - Word Search Sign in X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments X Cut Georgia 12 ~ A" A" Aa* A LB Copy AaBbCcI AaBbCc] AaBbCcI AaBbCcI AaBbCcD AaBbCc Find Gc Replace Paste Format Painter BIUXX A LA 1 Normal 1 Body Text 1 List Para.. 1 No Spac... T Table Pa... 1 Heading 1 Select * Editor Clipboard Font Paragraph Styles Editing Editor Size of Station GoodMarket Fair Market Poor Market Small 50 20 -10 Medium 60 40 -20 Large 80 30 -30 Probability 0.5 0.3 0.2 Page 1 of 2 27 of 524 words DX English (United States) Focus I + 150% O 9 W 2 AG( 1) PENG 3:5 15/11/2020