The alternative with the least expected cost is part time o

Solution

Maximum value of both full time and part time is calculated below-

Maximum value when hire full time = 280*0.15 + $480*0.55 + $720*0.30

                                                         = 42 + 264 + 216

                                                           = 522

Maximum value when hire part-time = $0*0.15 + $340*0.55 + $1,200*0.30

                                                         = 187 + 360

                                                         = 547

Best outcome = 280*0.15 + $480*0.55 + $1,200*0.30

                      = 42 + 264 + 360 = 666

Now, calculate expected value

Expected value = best outcome – maximum value = 666-547 = 119

Hence, the alternative with the least expected cost is high part time

And expected value is 119