Reference no: EM131941885
?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):
alternatives large average small
large inventory $20000 $12,000 -$2,000
average inventory $15,000 $15,000 $6,000
small inventory $9,000 $5,000 $5000
Probabilities associated with the states of nature are 0.30 for a? large? crowd, 0.45 for an? average? crowd, and 0.25 for a small crowd.
??a) The alternative that provides Deborah the greatest expected monetary value? ?(EMV) is large inventory
The EMV for this decision is ??$_____
??(enter your answer as a? whole? number).
??b) For?? Deborah, the expected value of perfect information? ?( EVPI)? ?= ?$______
??(enter your answer as a? whole? number)