Please complete all work in excel. Use excel to make the calculations (cells can be clicked on to view any formulas used) and be sure to identify your answer, including units. You must have an excel file with formulas within the cell An operations manager must purchase new equipment has developed a table of conditional values for the various alternatives (equipment options) and states of nature (demand market conditions). states of nature (market conditions)AlternativesGoodAveragePoorX800$38,000$21,000-$18,000Y900$33,000$16,000-$12,000Z1000$29,000$19,000$6,000If the probabilities associated with the states of nature are 0.40 for a good market, 0.40 for an average market, and 0.20 for a poor market, determine:2. the expected value of perfect information (EVPI)

EVPI is a concept that is used by the business manager while taking important decisions and is…

Answered: Please complete all work in excel. Use…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Please complete all work in excel. Use excel to make the calculations (cells can be clicked on to view any formulas used) and be sure to identify your answer, including units. You must have an excel file with formulas within the cell

An operations manager must purchase new equipment has developed a table of conditional values for the various alternatives (equipment options) and states of nature (demand market conditions).

	states of nature
	(market conditions)
Alternatives	Good	Average	Poor
X800	$38,000	$21,000	-$18,000
Y900	$33,000	$16,000	-$12,000
Z1000	$29,000	$19,000	$6,000

If the probabilities associated with the states of nature are 0.40 for a good market, 0.40 for an average market, and 0.20 for a poor market, determine:

2. the expected value of perfect information (EVPI)

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