Housing A company must decide whether to leave its model homes unfurnished, furnished with minimal accessories, or completely furnish them using a...

Housing A company must decide whether to leave its model homes unfurnished, furnished with minimal accessories, or completely furnish them using a custom decorator. The result of the decision is affected on the condition of the housing market. The following is the payoff table: Weak Moderate Strong Very Strong Unfurnished -$2000 $1500 $3000 $4500 Minimal -4500 $750 $5000 $7000 Custom -$6500 $2000 $4000 $10000 They have an internal forecaster who thinks that: P(weak)=0.2 P(moderate)=0.4 P(strong)=0.3 P(very strong)=0.1 They also consider to hire a consultant who to conduct economic forecasting for improving the probability estimate. Based on his past experience, these are his predictions: P(economy rise|weak market)=0.4 P(economy rise|moderate market)=0.7 P(economy rise|strong market)=0.8 P(economy rise|very strong market)=1 P(economy down|weak market)=0.6 P(economy down|moderate market)=0.3 P(economy down |strong market)=0.2 P(economy down |very strong market)=0 Calculate the payoff and determine the decision the company should make using each of the decision making under certainty criterion Calculate the payoff and determine the decision the company should make using the decision making under risk criterion. What is the EVPI? Calculate the payoff and determine the decision the company should make using the decision making under risk uncertainty criterion. How much is the maximum amount they should pay the consultant? What is the efficiency?