Usha is considering having her own petrol station built on the land that she owns. Her problem is to decide the size of the petrol station. The annual returns will depend on both size of her station and market condition. After careful analysis, Usha developed the following table. Size of the station

Market Situation Good Fair Poor Small 50000 20000 -10000 Medium 80000 30000 -20000 Large 100000 30000 -40000 Probability 0.2 0.5 0.3

(a) Referring to the probability given, compute the expected monetary value foreach alternative course of action and determine the decision taken. (8 marks) (b) Construct an opportunity loss table based on the table given. (6 marks) (c) Referring to the probability given, compute the expected opportunity loss for each alternative course of action and determine the decision taken. (8 marks) (d) Calculate the expected value of perfect information. (3 marks)