The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop Demand Decision Low High Alternative 1 $8,000 $24,000 Alternative 2 $4,000 $40,000 Alternative 3 $2,500 $50,000 The probability of low demand is 0 45, whereas the probability of high demand is 0 55 a) The alternative that provides Robert the greatest expected monetary value (EMV LOADING ) is Alternative 2 Alternative 1 Alternative 3

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Question: The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop: Demand Decision Low

The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop:

	Demand
Decision	Low	High
Alternative 1	$8,000	$24,000
Alternative 2	$4,000	$40,000
Alternative 3	$2,500	$50,000

The probability of low demand is

0.45,

whereas the probability of high demand is

0.55.

a) The alternative that provides Robert the greatest expected monetary value (EMV

) is

Alternative 2

Alternative 1

Alternative 3

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