Question: Suppose that in Problem 37 a forecasting study determines that the probabilities of demand volume are Low = 0.2, Medium = 0.2, and High =

Suppose that in Problem 37 a forecasting study determines that the probabilities of demand volume are Low = 0.2, Medium = 0.2, and High = 0.6. Use the Excel template Decision Analysis to determine the expected value decision.

How appropriate is it to use this criterion?

Interpret EVPI, the expected value of perfect information.

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