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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).

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 1", "Alternative 3", "Alternative 2"] using expected monetary value (EMV).

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