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This is the expected profit payoff for the supply that will earn the second highest profit payoff available without perfect information.
This is the expected profit payoff (loss) for the supply that will earn the lowest profit payoff available without perfect information.
With perfect information the company would be able to choose the correct level of supply for each of the levels of demand. Therefore, given that for each level of demand the company will choose the best supply alternative, the expected profit with perfect information is $68 [($0 × .1) + ($40 × .3) + ($80 × .4) + ($120 × .2)].
This is the expected profit payoff for the supply that will earn the highest profit payoff available without perfect information.