Question
Anita offers many quilt patterns and fabrics at a shop she has owned for 10 years. She decides that sales from walk in customers should
Anita offers many quilt patterns and fabrics at a shop she has owned for 10 years. She decides that sales from walk in customers should be augmented with online sales and is considering one of several warehouses to store the material that will be shipped online. She has limited her choices between warehouse A or Warehouse B. Anita realizes that, for lack of great warehouse choices, she could do nothing. She has devised the following decision table with market probabilities based on a survey offered through her quilt guild. Market: Excellent 40% Market: Fair 30% Market: Poor 30% Alternative 1: Warehouse A 40,000 15,000 -20,000 Alternative 2: Warehouse B 30,000 15,000 -10,000 Alternative 3: Do nothing 0 0 0
Calculate EMV for each alternative and provide a sound decision for Anita.
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