# Question

Reconsider the example illustrating the use of stochastic programming with recourse that was presented in Sec. 7.6. Wyndor management now has obtained additional information about the rumor that a competitor is planning to produce and market a special new product that would compete directly with Wyndor's product 2. This information suggests that it is less likely that the rumor is true than was originally thought. Therefore, the estimate of the probability that the rumor is true has been reduced to 0.5. Formulate the revised stochastic programming model and solve for its optimal solution. Then describe the corresponding optimal plan in words.

## Answer to relevant Questions

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