Explain what is the expected value with perfect information, Operation Management

Assignment Help:

ABC Company, a soft-drink vendor, has created a table of payoffs for three stocking decisions for three different states of nature:

States of nature (Demand)

Alternatives Heavy Medium Low

Large stock $2,060 $1,510 $1,200

Average stock $1,390 $1,430 $1,290

Small stock $1,560 $1,550 $1,890

Probabilities associated with the states of nature are 0.4 for heavy demand, 0.2 for medium demand, and 0.4 for low demand. What is the expected value with perfect information? Specify only the amount. e.g. 14000


Related Discussions:- Explain what is the expected value with perfect information

Define the reasons pandora would create a disaster recovery, Describe the r...

Describe the reasons Pandora would create a disaster recovery plan and a business continuity plan

Explain a technique that uses a series of probability, A technique that use...

A technique that uses a series of probability distributions and then transforms them into various risks is called: Answer Probability estimating Monte Carlo simulation

Linear Programming, Solve the following Linear Programming Problem using Si...

Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1+ X2 = 2 X1, X2 = 0

Explain what is the role and impact of hr practices, What is the role and i...

What is the role and impact of HR practices domestically and internationally when globalization forces the organization to seek expansion overseas?

Define conflict conceptualized differently under the unitary, The National ...

The National Labour Relations Act has been criticized as an outdated piece of legislation that is hindering, rather than helping, American cope with the realities of the new global

Explain effective project chartering process, Effective project chartering ...

Effective project chartering process contains multiple project types and projects laid out on a month to month basis.

Explain business buying decision processes, Explain the eight general strat...

Explain the eight general strategies in the business buying decision processes.

Information can be use effectively finish the swot analysis, 1. List at lea...

1. List at least FIVE sources you will use to obtain information about the firm%u2019s strengths, weaknesses, opportunities, and threats. Discuss what categories of the SWOT elemen

Explain similar job classifications, When you look at the pay of unionized ...

When you look at the pay of unionized employees vs non-union in similar job classifications, what are the differences in terms of amount of pay, how the pay levels are determined,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd