Assume that for a randomly selected day, there is a 30 probability of cold weather, 50 probability of mild weather, and 20 probability of warm weather What is the EVPI A plant manager considers the operational cost per hour of five machine alternatives The cost per hour is sensitive to three potential weather conditions cold, mild, and warm The following table represents the operations cost per hour for each alternative state of nature combination States of Nature Alternatives Weather related cost per hour EMV Cold cost day Mild cost day Warm cost day Machine $42 $40 $45 Machine 2 $42 $47 Machine 3 $40 $35 $54 $45 $48 Machine 4 $60 $30 $40 $45 Machine 5 $45 0 3 0 5 0 2

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Assume that for a randomly selected day, there is a 30  probability of cold weather, 50  probability of mild weather, and 20  probability of warm weather  What is the EVPI  A plant manager considers the operational cost per hour of five machine alternatives  The cost per hour is sensitive to three potential weather conditions  cold, mild, and warm  The following table represents the operations cost per hour for each alternative state of nature combination  States of Nature Alternatives Weather related cost per hour EMV Cold cost day Mild cost day Warm cost day Machine $42 $40 $45 Machine 2 $42 $47 Machine 3 $40 $35 $54 $45 $48 Machine 4 $60 $30 $40 $45 Machine 5 $45 0 3 0 5 0 2

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Question: Assume that for a randomly selected day, there is a 30% probability of cold weather, 50% probability of mild weather, and 20% probability of warm

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