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If p is the probability of Event 1 and (1-p) is the probability of Event 2, for what values of p would you choose decision
If p is the probability of Event 1 and (1-p) is the probability of Event 2, for what values of p would you choose decision A? Values in the table are profits. Choice/ Event Event 1 Event 2 A 20 B 12 Select ones Ob p .667 Od p> .467 Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs hat led to the following profit table, in thousands. If the probabilities of low, medium, and high demand are Da pus, and 04, respectively. then what decision should be made using the expected value method? Demand Order Size Low Medium High 12 15 15 2 lots 25 35 3 lots 60 Select one. 3 lots
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