Question: for this one im confused because i got two different answers, of 6710 and 3645 Director of legal services of ABC Company must decide whether
for this one im confused because i got two different answers, of 6710 and 3645
Director of legal services of ABC Company must decide whether to hire another full-time lawyer or to hire part-time lawyers. Anticipated costs for the two options under three possible demand levels are given in the table below: States of Nature Low Medium High Alternatives Demand Demand Demand $4700 Hire full-time $3600 $3500 Hire part- $7000 $7400 $6400 time Probabilities 0.1 0.25 0.65 What is the EMV of the best decision? Specify only the amount. e.g. 350
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