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Green Thumb Garden Supply orders plants to sell to its customers. Each plant costs $23 to purchase and another $15 to grow and feed for season. The plants will be sold for $65 a piece. Once the season is over, the remaining plants will be sold for just $25. The company estimates demand for the plants in the table below. Can you generate a payoff table, and compute the expected value for each alternative? What is the expected value for perfect information? How many plants should the garden supply company purchase?
Demand Profitability
22 0.15
23 0.25
24 0.25
25 0.25
26 0.10
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