The owner of the Humber North Fashion Company must decide among mass producing 100,000 turtle neck sweaters, designing and producing 10,000 new gala dresses, or leasing their production facilities to another company. The profit that will result from each alternative will be determined by whether material costs remain stable, increase moderately, or increase significantly. In the payoff table below the estimated profits/losses are given in Sthousands, Material Costs Moderate Significant Stable Increase Increase Turtle 1810 1000 -150 Necks Gala Decision 2150 700 2500 Dresses Leasing 840 950 1020 (a) Construct Opportunity Loss (Regret) Table Material Costs Stable Moderate Increase Significant Increase Turtle Necks Gala Decision Dresses Leasing [b] Determine the best decision using the Opportunity Loss decision criterion. O Decision Gala Dresses based on 3820 = min( 1510,3820,1360)Construct Opportunity Loss (Regret) Table Material Costs Stable Moderate Increase Significant Incre Turtle Necks Gala Decision Dresses Leasing ) Determine the best decision using the Opportunity Loss decision criterion. O Decision: Gala Dresses based on 3820 = min(1510,3820,1360) O Decision: Turtle Necks based on 1170 = min(1170,3520,1310) O Decision: Gala Dresses based on 3520 = max(1170,3520,1310) O Decision: Leasing based on min = 50The owner of the Humber Lakeshore Construction Company must decide among building a condo, constructing a shopping centre, or leasing all the company's equipment to another company. The profit that will result from each alternative will be determined by whether material costs remain stable, increase moderately, or increase significantly. The specialists calculated the likelihood for each possible level of material costs. In the payoff table below the estimated profit/losses are given in Sthousands. Material Costs Moderate Stable Significant Increase Increase Condo 600 900 800 Shopping Decision 1950 350 -2400 Centre Leasing 1850 1000 -200 Probability of State of 0.4 0.5 0.1 Nature a, Compute the expected monetary value for each decision: EMV(Condo] = EMV[Shopping Centre) = EMV (Leasing) = b. Using Expected Monetary Value criterion, select the best decision. Select an answer w c. Find the expected value with perfect information. EV PI= d. Determine the expected value of perfect information,DO IDEAS Homework Help -Q8 0 from On X Courses C imathas.humber.ca/assess2/7cid =5548laid=16444#/skip/6 Apps YouTube Maps Gmail G Google Microsoft Office Ho.. DO Statistics class IDEAS EVWPI = d. Determine the expected value of perfect information. EVPI = e. Please interpret EVPI. O EVPI is the minimum amount the company would pay for additional information O EVPI is the average amount the company would pay for additional information O EVPI is the usual amount the company would pay for additional information O EVPI is the maximum amount the company would pay for additional information Question HelpThe owner of the Humber North Fashion Company must decide among mass producing 100,000 turtle neck sweaters, designing and producing 10,000 new gala dresses, or leasing their production facilities to another company. The profit that will result from each alternative will be determined by whether material costs remain stable. increase moderately, or increase significantly. The specialists calculated the likelihood for each possible level of material costs. In the payoff table below the estimated profit/losses are given in Sthousands Material Costs Moderate Significant Stable Increase Increase Turtle 1800 1040 -170 Necks Gala Decision 2100 550 -2400 Dresses Leasing BAD 940 1000 Probability of State 05 0.1 of Nature (a] Construct Opportunity Loss (Regret) Table. Material Costs Stable Moderate Increase Significant Increase Turtle Necks Gala Decision Dresses LeasingLeasing Probability of 0.4 0.5 0.1 State of Nature (b) Compute the expected opportunity loss value for each decision. EOL(Turtle Necks) = A EOL(Gala Dresses) = FOL[Leasing) = (c) Select the best decision using EOL criterion. O Decision: Leasing O Decision: Gala Dresses O Decision: Turtle Necks (d) Which of the following formulae is correct? O EVPI - min EMV O EVPI = max EMV D EVPI = max EOL O EVPI = min EOL