The following payoff table provides profits based

on various possible decision alternatives and various levels of

demand at Robert Klassan$$s print shop:

DEMAND

LOW HIGH

Alternative $1$ $$10,000$ $$30,000$

Alternative $2$ $ $5,000$ $$40,000$

Alternative $3$$ $2,000$ $$50,000$

The probability of low demand is $0\mathrm{.}4,$ whereas the probability of

high demand is $0\mathrm{.}6.$

a$)$ What is the highest possible expected monetary value?

b$)$ What is the expected value with perfect information $($EVwPI$)?$

c$)$ Calculate the expected value of perfect information for this

situation.

$8$