FIN 310 - Spring 2020 JAMES FREEMAN : | 03/31/20 1:19 PM Homework: Hmwk 3 Save Score: 6 of 9 pts 2 of 17 (17 complete) HW Score: 75.83%, 75.83 of 100 pts 1x Problem A.3 Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): Alternatives Large Stock Average Stock Small Stock States of Nature (demand) Big Average Small $22,000 $14,000 -$2,500 $16,000 $11,000 $6,500 $8,400 $7,500 $4,800 The probabilities associated with the states of nature are 0.25 for a big demand, 0.55 for an average demand, and 0.20 for a small demand. a) The alternative that provides Andrew Thomas the greatest expected monetary value (EMV) is Large Stock The EMV of this decision is $ 12700 (enter your answer as a whole number). b) The expected value of perfect information (EVPI) for Andrew Thomas = $ (enter your answer as a whole number). Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check