The Yogurt Industry had a total sales value just under 2.2 billion Pounds in 2022. The Yogurt and Sour milk food category has been recovering from a period of period of loss of annual sales. The industry has been challenged by the emergence of alternative dairy products and consumers health concerns. More recently the industry has been affected by raises in input prices, leading to an increase in consumer's prices. In the last year it had a year-on-year growth of 7.3 according to Passport Euromonitor. In the UK both national brands (say brands from Danone) and private labels (supermarket brands) have significant market share. The table 1 below shows the market shares in percentage of sales for the years 2021-2023 (estimate): United Kingdom: Company Shares | National - Historical Owner | Historical | % breakdown Categ Company Name 2021 2022 2023 22.1 22.6 21.7 Danone Ltd Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products Yoghurt and Sour Milk Products £147.5 million £152.5 million £157.5 million £162.5 million £167.5 million Probability 15% 30% 25% 20% Müller Dairy (UK) Ltd Yeo Valley Farms (Production) Ltd Yoplait UK Ltd Fage UK Ltd Tesco Plc 10% Epicurean Dairy (UK) Ltd Biotiful Dairy Ltd Onken Dairy (UK) Ltd Benecol Ltd J Sainsbury Plc Arla Foods Ltd Lactalis Nestlé Chilled Dairy Co Ltd Asda Group Ltd Yakult UK Ltd Rachel's Dairy Ltd Unilever Foods UK Ltd Other Private Label Others Total £127.5 million £142.5 million £157.5 million £172.5 million Congratulations you were hired as sales manager For Yeo Valley Farms (Production) Ltd and your first task is to evaluate two strategies developed by the marketing team. As you can see each of these options have different expected profits. You aim to maximize the expected profit in the next 12 months. Table 2 below shows the probability distributions for profits when adopting Strategy, A or B: Strategy A Strategy B Profit Profit £187.5 million Probability 15% 20% 15% 20% 17.3 15.7 15.0 6.9 6.6 6.8 6.1 6.2 6.0 5.4 5.4 5.4 30% 653 SON∞ A WAGA 3.5 3.4 3.4 3.3 2.2 2.0 2.3 2.7 2.8 3.4 3.2 2.7 2.8 2.7 2.6 2.4 2.3 2.4 2.2 1.9 1.9 2.0 1.9 1.8 1.8 1.8 3.3 3.1 1.9 2.0 1.9 1.8 1.7 - 7.4 7.8 7.7 7.7 8.5 11.1 100.0 100.0 100.0 Source: Euromonitor 2023 To make your decision determine: 1. The expected profit, the standard deviation, and coefficient of variation for each strategy 2. Compare your results and recommend which options is appropriate. 3. Assuming Yeo Valley owners are risk averse, write a brief report explaining and justifying your options