# Clay Whybark, a soft-drink vendor at Hard Rock CafÃ©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, 05 for an average demand, and 0.2 for a small demand.(a) Determine the alternative that provides

Chapter 18, Problems #3

Clay Whybark, a soft-drink vendor at Hard Rock CafÃ©€™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, 05 for an average demand, and 0.2 for a small demand.

(a) Determine the alternative that provides Clay Whybark the greatest expected monetary value (EMV).

(b) Compute the expected value of perfect information(EVPI).

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