The following payoff table provides profits based on various possible decision alternatives adn various levels of demand at Robert Klassan's print shop: decision low high alt 1 $10,000 $36,000 alt 2 $6,000 $38,000 alt 3 -$2500 $52,000 The probability of low demand is 0.40 whereas the probability of high demand is 0.60.
The following payoff table provides profits based on various possible decision alternatives adn various levels of demand at Robert Klassan's print shop:
decision low high
alt 1 $10,000 $36,000
alt 2 $6,000 $38,000
alt 3 -$2500 $52,000
The probability of low demand is 0.40 whereas the probability of high demand is 0.60.
a) The alternative that provides Robert the greatest expected monetary value is _________
The EMV for this decision is $_______
b) The expected value with perfect information (EVwPI)= $______
c) The expected value of perfect information (EVPI) for Robert= $________
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