Determine expected value with perfect information

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Reference no: EM13109205

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

Reference no: EM13109205

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