In: Statistics and Probability
Option Low Moderate High
Hire $ (250,000) $ 100,000 $ 625,000
Subcontract $ 100,000 $ 150,000 $ 415,000
Do Nothing $ 50,000 $ 80,000 $ 30,000
Demand Low Moderate High
Probabilities 25% 50% 25%
I need help answering the following questions using the payoff matrix above.
a) Determine the decision based on Maximin
b) Determine the decision based on Maximax
c) Determine the decision based on the expected monetary value (EMV).
d) Determine the decision based on Minimax Regret
e) Determine the decision based on expected opportunity loss (EOL).
f) Determine the expected value of perfect information (EVPI)