The XY Manufacturing Company must decide whether to manufacture a component part at its plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in ten thousand of pesos):

	State of Nature
	Low demand, s1	Medium demand, s2	High demand, s3
Manufacture, d1	-100	200	500
Manufacture d2	50	225	350

The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30.

REQUIRED:

d. What is XY Manufacturing Company optimal decision strategy? e. What is the expected value of the market research information? f. What is the efficiency of the information?