(Solved): Chris Suit is administrator for Lowell Hospital. She is trying to determine whether to build a lar ...

Chris Suit is administrator for Lowell Hospital. She is trying to determine whether to build a large wing on the existing hospital, a small wing, or no wing at all. If the population of Lowell continues to grow, a large wing could return $$\$150,000$$ to the hospital each year. If a small wing were built, it would return $$\$100,000$$ to the hospital each year if the population continues to grow. If the population of Lowell remains the same, the hospital would encounter a loss of $$\$85,000$$ with a large wing and a loss of $$\$45,000$$ with a small wing. Unfortunately, Suit does not have any information about the future population of Lowell. a. Assuming that each state of nature has the same likelihood, determine the best alternative. , what is the EMV? b. If the likelihood of growth is $$.4$$ and that of remaining the same is $$.6$$ and the decision criterion is expected monetary value, which decision should Suit make? , what is the EMV?