Question
A concessionaire for the local ballpark has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of
A concessionaire for the local ballpark has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd).
| Large | Average | Small |
Probability | .3 | .5 | .2 |
Alternative 1 | 9,000 | 12,000 | -2,000 |
Alternative 2 | 22,000 | 6,000 | 6,000 |
Alternative 3 | 15,000 | 12,000 | 5,000 |
If the probabilities associated with the states of nature are 0.30 for a large crowd, 0.50 for an average crowd, and 0.20 for a small crowd, the concessionaire would choose [ Select ] ["Alternative 3", "Alternative 2", "Alternative 1"] using expected monetary value (EMV).
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