You are called on to decide how your company should produce its new cell phone screen defroster? (for use by skiers and others spending time out of doors in the? cold). You develop a cost matrix? ($000's), shown to the right. Complete parts a.

State of Nature (State of the Economy) Recession Stable Expansion Out-Source 220 340 290 In-House 170 260 380a) Suppose P(Recession) = 0.3, P(Stable) = 0.1, and P(Expansion) = 0.6. What is the expected value of each action? EV(Out-Source) = thousand dollars EV(In-House) thousand dollars