# Andrew Thomas, a sandwich vendor at Hard Rock Cafes annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): The probabilities associated with the states of nature are 0.3 for a big demand, 0.5 for an average demand, and 0.2 for a small demand. a) Determine the alternative that

Andrew Thomas, a sandwich vendor at Hard Rock Cafe€™s annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd):

The probabilities associated with the states of nature are 0.3 for a big demand, 0.5 for an average 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).

## This problem has been solved!

Do you need an answer to a question different from the above? Ask your question!

**Related Book For**