Deborah hollwager a concessionaire for the amway center in


?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)

Solution Preview :

Prepared by a verified Expert
Basic Statistics: Deborah hollwager a concessionaire for the amway center in
Reference No:- TGS02737357

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)