3.AlternativesState of Nature, Payoff (RM Mil.)EMVStrongmarketFair marketPoormarketWard A1201004098Ward B90704575Ward C60605559Probability0.50.30.2AlternativesState of Nature, Payoff (RM Mil.)EOLStrongmarketFair marketPoormarketWard A00153Ward B30301026Ward C6040042Probability0.50.30.2(I) Based on the Maximize Expected Monetary Value model, Hospital Kajang should invest inwhich has the highest EMV, to maximize expected profit.(II) EVWPI=(120✕0.5＋100✕0.3＋55✕0.2)=101(III)EVPI=EVWPI – Max EMV=101-98=3(IV) Minimum EOL is 3(V)Three MethodPayoff
4.(I)0.20.20.20.22.214.171.124.50.3hospitalkajangWard AEMV=9812010040Ward BEMV=75907045Ward C
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Harshad number,Ward B,Max EMV,Maximize Expected Monetary Value model