Question content area

Part $1$

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$)$:

$$

States of Nature$($size of$$ crowd$)$

Alternatives

Large

Average

Small

Large InventoryLarge Inventory

$ $20$ comma $000$$$20,000$

$ $10$ comma $000$$$10,000$

negative $ $2$ comma $000$$$2,000$

Average InventoryAverage Inventory

$ $15$ comma $000$$$15,000$

$ $12$ comma $000$$$12,000$

$ $6$ comma $000$$$6,000$

Small InventorySmall Inventory

$ $9$ comma $000$$$9,000$

$ $6$ comma $000$$$6,000$

$ $5$ comma $000$$$5,000$

Probabilities associated with the states of nature are $0\mathrm{.}300\mathrm{.}30$ for a large$$ crowd, $0\mathrm{.}500\mathrm{.}50$ for an average$$ crowd, and $0\mathrm{.}200\mathrm{.}20$ for a small crowd.

Part $2$

$$a$)$ The alternative that provides Deborah the greatest expected monetary value $($EMV LOADING... $)$ is

Average Inventory

$.$

Part $3$

The EMV for this decision is $$$enter your response here $($enter your answer as a whole$$ number$).$