w AutoSave Off Document1 - Word 9 Search (Alt+Q) Gerom Tabbuac GT X File Home Insert Draw Design Layout References Mailings Review View Help Comments v Share & Cut Segoe UI 12 ~ A" A Aa Ap Find Paste LA Copy Normal No Spacing Heading 1 Heading 2 Title Subtitle Cc Replace Dictate Sensitivity ditor Reuse Format Painter BI U~ ab X X A LA Select v Files Undo Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor | Reuse Files . 7. ( 1 0 . 1 . . . 2 . . . 1 . . . 3 . . . 1 . . . 4 . . . 1 . . . 5 . . . 1 . . .6 . . . . . .1 . . Humber Tech is considering starting either a small, regular, or large tech store in Etobicoke. The type of store they open depends on the city's market potential which may be high with 20% chance, medium with 20% chance, or low with 60% chance. The potential profits ($) in each case are shown in the payoff table below. High Medium |Low Small 4900 4600 500 PART A Regular 5 5700 -800 Large 6000 3300 -200 1. What is the best expected payoff and the corresponding decision using the Expected Monetary Value (EMV) approach? $ 2. What is the expected value of perfect information (EVPI)? | PART B Humber Tech is now considering hiring ALBION consultants for information regarding the city's market potential. ALBION Consultants will give either a favourable (F) or unfavourable (U) report. The probability of ALBION giving a favourable report is 0.4. If ALBION gives a favourable report, the probability of high market potential is 0.32 while the probability of a low market potential is 0.16. If ALBION gives an unfavourable report, the probability of high market potential is 0.12 and that of low market potential 0.8. 1. If ALBION gives a favourable report, what is the expected value of the optimal decision? 2 If ALBION gives an unfavourable report, what is the expected value of the optimal decision? 3. What is the expected value with sample information (EVwSD) provided by ALBION? 4. What is the expected value of the sample information (EVSI) provided by ALBION? 5. What is the efficiency of the sample information? Round % to 1 decimal place Page 1 of 1 261 words X Focus 1009% O N W 1:59 PM 1/28/2022 5