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a) Assume Mr. Ordoez wants to maximize expected profits. What should he do? What is the expected revenue with this strategy? Draw a decision tree
a) Assume Mr. Ordoez wants to maximize expected profits. What should he do? What is the expected revenue with this strategy? Draw a decision tree to support your recommendation. b) What is the EVPI of knowing whether the storm hits before making the harvest decision? c) Suppose Cervantes can perform a test now to see if the Botrytis mold is present in the soil. If the mold is present in the soil, there is a 90% chance that it will grow on the grapes if the storm hits. If the mold is not present, there is no chance that the mold will grow on the grapes if the storm hits. The mold will not grow on the grapes if there is no storm. What is the most Ordoez should be willing to pay for this test
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