Use the accompanying payoff table and probabilities for the states of nature to complete parts a and b.

a. Choose the best alternative using decision making under risk. Select alternative _____ because it has the_____ expected monetary value under risk (EVUR), equal to______

(Type an integer or a decimal.)

b. What is the expected value of perfect information?

EVPI=______

X i Payoff Table With Probabilities Alternative A B Probability Demand Level 1 2 $400 $900 $200 $1,100 - $1,000 $1,300 0.30 0.30 3 $1,500 $1,800 $3,000 0.40