Refer to Problem 21. After extensive discussion with an economics professor from his alma mater, Capt. Muralidharan has decided that reasonable probabilities for the various demand scenarios are 0.10 for low, 0.30 for average, 0.40 for good, and 0.20 for excellent demand:

1. Which perfume will yield the maximum expected profits?

2. Compute the expected value of perfect information, and interpret it.

Data from problem 22

Table F.28

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State of Nature (Demand) Decision Alternative Average $60,000 $90,000 $80,000 Good Low Excellent $50,000 -$40,000 $80,000 $130,000 $100,000 Lavender Mist $110,000 $150,000 Jasmine Dreams Sandalwood Delight $20,000 $120,000