You are managing the introduction of a new product and would like to conduct a test-run at a regional level before embarking on a nationwide launch of the product. There are three regions of the country where such a test-run could be conducted: Alberta; Atlantic Canada; and Ontario. However, uncertainty exists regarding the actual payoffs from the test-runs. More specifically, for each region, three revenue numbers and their respective probabilities have been made available by the consultants as depicted in the payoff table below.

Decision	Payoffs ($)
	High	Medium	Low
Alberta	60,000	50,000	-5,000
Atlantic Canada	56,901	51,075	-7,000
Ontario	75,000	51,000	-20,000
Probability	0.3	0.4	0.3

1. Which region will you choose if your objective is to maximize expected payoff? (4 points) (Please show ALL FORMULAS AND STEPS IN EXCEL)
2. What is the expected value of perfect information for this question? (4 points) (Please show ALL FORMULAS AND STEPS IN EXCEL)
3. What is your decision if you are a risk averse individual? Use an exponential utility function such as Ux=1-e^(-x/R) , where x is the payoff, and R=250,000. (4 points) (Please show ALL FORMULAS AND STEPS IN EXCEL)
   • How would you explain the change from part a)? (4 points)
   • What is the dollar equivalent of the risk-averse decision? (4 points)