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Stocking decisions for three different states of nature

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Reference no: EM133448617

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Company, a soft-drink vendor, has created a table of costs for three stocking decisions for three different states of nature: Alternatives States of Nature Low Demand Medium Demand High Demand Large Stock $3000 $4500 $5000 Medium Stock $4600 $4000 $4000 Small Stock $3200 $5700 $5400 Probability 0.1 0.2 0.7 The probabilities of each of the states of nature are provided in the table. What is the expected value of perfect information?

Reference no: EM133448617

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