I believe I have the right answer for the expected value of perfect information….I came up with: EVwPI = 1540
Your assignment for this week is to do Problems 3.1, 3.2, 3.3 below. Thisassignment must be in Excel/QM and submitted throughAssignment. Also provide a written response for each part of eachquestion. (See rubric below.)3.1) A manager needs to hire short-term employees to meet productiondemands. The manager would like to hire one of three possible short-termworkers. Ten hours are demanded with 50% probability, 20 hours aredemanded with 30% probability, and 30 hours are demanded with 20%probability. The table below represents the alternatives and possible statesof nature.States of Nature(Worker hrs.demanded)Alternatives10 hr. total pay20 hr. total pay30 hr. total payWorker 1$1,000.00$1,800.00$2,400.00Worker 2$900.00$1,800.00$2,500.00Worker 3$950.00$1,750.00$2,500.00a) Which alternative will minimize the expected monetary value?b) What is the expected value of perfect information?
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