andrew thomas , a sandwich vendor at hard rock cafe 's annual rockfest, created a table of conditional values for various alternatives adn states of nature: alternatives big average small large stock $22,000 $12,000 -$2,000 average stock $14,000 $10,000 $6,000 small stock $9,000 $8,000 $4,000 the probabilities associated with the states of nature are 0.3 for a big demand, 0.5 for an anverage demand, and 0.2 for a small demand. a) determine the alternative that provides andrew the greatest expected monetary value (EMV). b) compute the expected value of perfect information (EVPI).
andrew thomas , a sandwich vendor at hard rock cafe 's annual rockfest, created a table of conditional values for various alternatives adn states of nature:
alternatives big average small
large stock $22,000 $12,000 -$2,000
average stock $14,000 $10,000 $6,000
small stock $9,000 $8,000 $4,000
the probabilities associated with the states of nature are 0.3 for a big demand, 0.5 for an anverage demand, and 0.2 for a small demand.
a) determine the alternative that provides andrew the greatest expected monetary value (EMV).
b) compute the expected value of perfect information (EVPI).
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