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13 A bakery makes fresh donuts every morning. The number of donuts that can be sold each day is uncertain and the bakery must decide

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13 A bakery makes fresh donuts every morning. The number of donuts that can be sold each day is uncertain and the bakery must decide early each morning, how many donuts to make that day. The bakery has created the following payoff table to summarize the situation. on Demand for donuts (State of Nature) Alternative (number to produce) High Moderate Low Make few 100 100 100 Made medium 250 225 -20 Make many 350 150 -50 It estimates the following probabilities for the respective levels of demand. High Moderate Low 0.4 0.4 0.2 What is the expected value of perfect information for the bakery (EVPI)

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