Expected value with additional information Refer to the data in Problem 24-7 and assume that based on past experience, the probability of demand per day has been determined as follows:

Problem 24-7

Deterministic decision making using payoffs The agricultural firm of Dewey, Cheatum & Howe grows pineapples in Hawaii. When the pineapples are harvested they are packed twelve to a box and trucked from the fields to the wholesale produce market in Honolulu. Each box of pineapples costs the firm $6 to produce, pack and transport to market. The selling price has been averaging $10 per box and is not expected to change. Boxes of pineapples that are not sold at the end of the day are discarded. The money invested in discards is lost but it is costlier to take the boxes back to the farm and keep them in cold storage.

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Boxes per Day Probability 100 .1 200 .4 300 .3 400 .2