Clay Whybark, a soft-drink vendor at Hard Rock Cafés 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 Caf̩۪s annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd):
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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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