XYZ is a paint product manufacturer, and one of the plants is experiencing a substantial increase in demand. The future demand for the products could be low, medium, or high, with probabilities estimated to be 25%, 50%, and 30%, respectively. The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand. Given the following payoff matrix, compute the EVPI.
a. $9.5 M
b. $10 M
c. $12.4 M
d. $7 M
a. $9.5 M
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