$($d$)$

Suppose management is concerned about the probability assessments when demand for Chardonnay wine is strong. Some believe it is likely for Riesling demand to also be strong in this case. Suppose the probability of strong demand for Chardonnay and weak demand for Riesling is $0\mathrm{.}05$ and that the probability of strong demand for Chardonnay and strong demand for Riesling is $0\mathrm{.}40.$ How does this change the recommended decision? Assume that the probabilities when Chardonnay demand is weak are still $0\mathrm{.}05$ and $0\mathrm{.}50.$

EV$($Plant Chardonnay$)$

EV$($Plant both grapes$)$

EV$($Plant Riesling$)$

The best decision is to plant

both

grapes.