The director of social services of a county has learned that the state has mandated additional information requirements. This will place

an additional burden on the agency. The director has identified three acceptable alternatives to handle the increased workload. One

alternative is to reassign present staff members, the second is to hire and train two new workers, and the third is to redesign current

practice so that workers can readily collect the information with little additional effort. An unknown factor is the caseload for the

coming year when the new data will be collected on a trial basis. The estimated costs for various options and caseloads are shown in

the following table:

${?}^{**}$ Cost in $ thousands.

After contemplating the caseload question, the director of social services has decided that reasonable caseload probabilities are $0\mathrm{.}10$

for moderate, $0\mathrm{.}40$ for high, and $0\mathrm{.}50$ for very high.

a$.$ Which alternative will yield the minimum expected cost?

New Staff

Reassign

Redesign

b$.$ Determine the expected value of perfect information using an opportunity loss table. $($Round your answers to the nearest whole

number. Leave no cells blank $-$ be certain to enter $"0"$ wherever required.$)$