A beverage stand can sell either soft drinks or coffee on any given day.If the stand sells
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Question:
A beverage stand can sell either soft drinks or coffee on any given day.If the stand sells soft drinks and the weather is hot, it will make P2,500; if the weather is cold, the profit will be P1,000.If the stand sells coffee and the weather is hot, it will make P1,900; if the weather is cold, the profit will be P2,000.The probability of cold weather on a given day at this time is 60%.
The expected payoff for either selling coffee or soft drinks and the expected payoff if the vendor has perfect information are
Coffee
Soft drinks
Perfect information
A.
P1,360
P1,600
P3,000
B.
P1,960
P1,600
P2,200
C.
P2,200
P1,900
P1,360
D.
P3,900
P1,900
P1,960
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