# The Palm Garden Greenhouse specializes in raising carnations that are sold to florists. Carnations are sold for

## Question:

Daily Demand ......... Probability

20 .......... 0.05

22 .......... 0.10

24 .......... 0.25

26 .......... 0.30

28 ......... 0.20

30 ......... 0.10

1.00

a. Develop the payoff table for this decision situation.

b. Compute the expected value of each alternative number of (dozens of) carnations that could be stocked and select the best decision.

c. Construct the opportunity loss table and determine the best decision.

d. Compute the expected value of perfect information.

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