Solve the below problem:
Q: In the clinic renovation example, what if management thinks that the likelihood of current demand remaining is 30%, the likelihood of a moderate increase is 25%, and the likelihood of a large increase is 45%? What should they do, according to the expected total payoff?
Alternative State of the world Outcome
( future demand forecasts)
no renovation demand remains at 20 patients per day demand met
" increase to 35 " not met
" increase to 50 " not met
minor renovation remain at 20 " demand met
" increase to 35 " demand met
" increase to 50 " not met
major renovation remains at 20 " demand met
" increase to 35 " demand met
" increase to 50 " demand met