Question: Brooklyn bagel is preparing a plant expansion. The company can build a large or small plant. The expected payoffs for the plant depend on the level of consumer demand for Brooklyn Bagel. The company believes there is a 59% chance that demand for its bagels will be high and a 41% chance it will be low and has computed the monetary value of possible outcomes (in $millions) as shown below.

(a) What is your recommended decision under each of the following criteria followed by the expected return?

(b) Calculate and interpret the value of perfect information as it pertains to this problem.