The president of an automobile battery company must decide which one of three new types of batteries to produce. The fixed and variable costs of each battery are shown in the accompanying table.

The president believes that demand will be 50,000, 100,000, or 150,000 batteries, with probabilities .3, .3, and .4, respectively. The selling price of the battery will be $40.
a. Determine the payoff table.
b. Determine the opportunity loss table.
c. Find the expected monetary value for each act, and select the optimal one.
d. What is the most the president should be willing to pay for additional information about demand?

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Battery Fixed Cost ($) Variable Cost (per Unit) ($) 900,000 1,150,000 1,400,000 20 2 3 17 15