Question: Jill is the manager at a bakery. She needs to decide how many birthday cakes to bake each day. Use the accompanying payoff table and

  1. Jill is the manager at a bakery. She needs to decide how many birthday cakes to bake each day.

    Use the accompanying payoff table and probabilities.

    Demand Level

    Alternative

    10

    20

    30

    Bake 10 (d1)

    80

    80

    80

    Bake 20 (d2)

    60

    160

    160

    Bake 30 (d3)

    40

    180

    240

    Probability

    0.2

    0.3

    0.5

    Compute the Expected Value of Perfect Information (EVPI)?

    A.

    EVPI = 8
    B.

    EVPI =80
    C.

    EVPI = 182
    D.

    EVPI = 190

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