abc company a soft-drink vendor has created a


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

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