A manager has learned that annual profits from four alternatives being considered for solving a capacity problem are projected to be $15,000 for A,$30,000 for B,$45,000 for C,and $60,000 for D if state of nature 1 occurs; and $60,000 for A,$80,000 for B,$90,000 for C,and $35,000 for D if state of nature 2 occurs.
(i)If P(State of Nature 1)is .40,what alternative has the highest expected monetary value?
(ii)Determine the range of P(S2)for which each alternative would be optimal.

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The Answer of A manager has learned that annual profits from four alternatives being considered for solving a capacity problem are projected to be $15,000 for A,$30,000 for B,$45,000 for C,and $60,000 for D if state of nature 1 occurs; and $60,000 for A,$80,000 for B,$90,000 for C,and $35,000 for D if state of nature 2 occurs.
(i)If P(State of Nature 1)is .40,what alternative has the highest expected monetary value?
(ii)Determine the range of P(S2)for which each alternative would be optimal.

A Manager Has Learned That Annual Profits from Four Alternatives