A paint company has three sources for buying bright red pigment for their paints: Vietnam, Taiwan, or Thailand. Unfortunately, the pigment is made from a bush whose annual growth is heavily dependent upon the amount of rainfall during the growing season. The tables below show probabilities and prices for wet, dry and normal growing seasons:

Probabilities

	Wet	Dry	Normal
Vietnam	0.5	0.2	0.3
Taiwan	0.6	0.3	0.1
Thailand	0.4	0.4	0.2

	Wet	Dry	Normal
Vietnam	0.95	1.10	1.00
Taiwan	0.85	1.20	0.98
Thailand	0.90	1.15	1.05

What is the expected value (price) associated with the selected firm?

Answer rating: 100% (QA)

Pricepound Probability of Wet season Wet season price Probability of d... View the full answer