Question: I also need help solving for Value of the Return and Expected Value of Perfect Information. Deborah Hollwager a concessionaire for the Amway Center in
I also need help solving for Value of the Return and Expected Value of Perfect Information.
Deborah Hollwager a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd) States of Nature (size of crowd) Alternatives Large Average Small Large Inventory $20,000 $10,000 - $3,000 Average Inventory $15,000 $15,000 $8,000 Small Inventory $10,000 $4,000 $5,000 Probabilities associated with the states of nature are 0 30 for a large crowd, 0.45 for an average crowd, and 0.25 for a small crowd a) The alternative that provides Deborah the greatest expected monetary value (EMV) is
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