The managers of a soft drinks company are planning their production strategy for next summer. The demand for their products is closely linked to the weather, and an analysis of weather records suggests the following probability distribution for the June to August period:

Weather conditions	Probability
Hot and dry	0.3
Mixed	0.5
Cold and wet	0.2
1

The table below shows the estimated profits ($000s) whichwill accruefor the different production strategies and weather conditions:

	Weather conditions
Production strategy	Hot&dry	Mixed	Cold&wet
Plan for high sales	400	100	-100
Plan for medium sales	200	180	70
Plan for low sales	110	100	90

On the basis of the information given,determine thecourse of action which will maximize expectedprofits!

A long-range weather forecast suggests that nextsummers weatherconditions will, in general, be cold and wet. Thereliability oftheforecast is indicated by the followingprobabilities whicharebased on past performance:

p(cold,wet conditions forecast when weather will behotanddry) = 0.3

p(cold,wet conditions forecast when weather willbemixed) = 0.4

p(cold,wet conditions forecast when weather will becoldandwet) =0.6

In the light of the long-range weather forecast, should the company change from the course of action you recommended before?