Andrea Dawson, a sandwich vendor at her town's annual Hard Rock Festival, created a table of...

Transcribed Image Text:

Andrea Dawson, a sandwich vendor at her town's annual Hard Rock Festival, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): States of Nature (demand) Alternatives Large Stock Average Stock Small Stock Big $22,000 Average $10,000 Small - $2,500 $12,000 $11,000 $9,000 $8,100 $5,500 $3,200 The probabilities associated with the states of nature are 0.30 for a big demand, 0.50 for an average demand, and 0.20 for a small demand. a) The alternative that provides Andrea Daswon the greatest expected monetary value (EMV) is The EMV of this decision is $ (enter your answer as a whole number). b) The expected value of perfect information (EVPI) for Andrea Dawson = $ (enter your answer as a whole number). Andrea Dawson, a sandwich vendor at her town's annual Hard Rock Festival, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): States of Nature (demand) Alternatives Large Stock Average Stock Small Stock Big $22,000 Average $10,000 Small - $2,500 $12,000 $11,000 $9,000 $8,100 $5,500 $3,200 The probabilities associated with the states of nature are 0.30 for a big demand, 0.50 for an average demand, and 0.20 for a small demand. a) The alternative that provides Andrea Daswon the greatest expected monetary value (EMV) is The EMV of this decision is $ (enter your answer as a whole number). b) The expected value of perfect information (EVPI) for Andrea Dawson = $ (enter your answer as a whole number).