Michael, Nancy, & Associates (MNA) produce color printers. The demand for their printers could be light, medium, or high with the following probabilities. 
The company has three production alternatives for the coming period. The payoffs (in millions of dollars) associated with the three alternatives are shown below. 
a.Compute the expected value of the three alternatives. Which alternative would you select, based on the expected values?
b.Compute the expected value with perfect information (i.e., expected value under certainty).
c.Compute the expected value of perfect information (EVPI).
Definitions:
Fixed Cost
Costs that do not vary with the volume of production or sales, remaining constant over a specified range of activity and period of time, such as rent or salaries.
Units Sold
The total number of a product that a company sells within a particular period, indicating the volume of business activity.
Profit-volume Chart
A graphical representation that shows the relationship between a company's profits and its volume of sales.
Sales Mix
The proportion of different products or services that a company sells, affecting its overall profitability due to varying margins.
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