Question
Deborah Hollwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decision) and states
Deborah Hollwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd):
Probabilities associated with the states of nature are 00.25 for a large crowd, 0.55 for an average crowd, and 0.20 for a small crowd.
a) The alternative that provides Deborah the greatest expected monetary value (EMV) is
The EMV for this decision is
(enter your answer as a whole number).
b) For Deborah, the expected value of perfect information ( EVPI) =
(enter your answer as a whole number).
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