Question: Deborah Hollwager a concessionaire for the Des Moines ballpark

Deborah Hollwager, a concessionaire for the Des Moines ballpark, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd):

If the probabilities associated with the states of nature are 0.3 for a large crowd, 0.5 for an average crowd, and 0.2 for a small crowd, determine:
(a) The alternative that provides the greatest expected monetary value (EMV).
(b) The expected value of perfect information(EVPI).

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  • CreatedJuly 23, 2013
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