Marc Champlaeux, the owner of Green Mountain Organic Farm has to decide which crop to plant in his 100 acre farm in St. Albans, Vermont. The yield of each crop is dependent upon the amount of rainfall during the growing season. Based on his past experience, he estimated the following profit payoff table:

Decision

Alternatives States of Nature (Rainfall forecast)

High (S₁) Average (S₂) Low (S₃)

Crop A 40,000 30,000 10,000

Crop B 32,000 48,000 -18,000

Crop C 51,000 26,000 - 6,000

Suppose the probabilities for High, Average, and Low rainfall forecast are 0.3, 0.3, and 0.4 respectively.

Specify the best decision alternative using the Expected Monetary Value (EMV) method.

What is the expected value of perfect information (EVPI)?