Assignment:
Deborah Hollwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decisions) and states of nature (size of crowd):
If the probabilities associated with the states of nature are 0.3 for a large crowd, 0.5 for an average crowd, and 0.2 for a small crowd, determine:
a) The alternative that provides the greatest expected monetary value (EMV).
b) The expected value of perfect information (EVPI).
Provide complete and step by step solution for the question and show calculations and use formulas.