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Question - In an entrepreneur moment, you came up with the idea to sell calculators to the incoming fall Bus 3510 class of 2021. During the summer you have found that you can purchase them from existing science students for $18. The Business professor has agreed to purchase all the scientific calculators for his class from you but at this time can only give you the probabilities but knows he will need at least 25 calculators, but maybe as many as 30. The professor is willing to pay $25.00 per calculator and the book store will buy back any unsold calculators from you for $10.00. The probabilities as estimated by the professor are as follows: (TWO DECIMALS ONLY)
25 calculators .10
26 calculators .20
27 calculators .25
28 calculators .10
29 calculators .20
30 calculators .15
Required - What is the expected value for each option? What is the EVPI? Based on the numbers which option would you select? SHOW your Decision Table fully populated including EV.
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