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The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Amber Gardner's software firm:
DEMAND
Decision LOW HIGH
Alternative 1 10,000 36,000
Alternative 2 6,000 38,000
Alternative 3 -1,500 50,000
The probability of low demand is 0.40, whereas the probability of high demand is 0.60.
a) The alternative that provides Amber the greatest expected monetary value (EMV) is _______(Alternative 1,2 or 3)
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