Explain what is the expected value with perfect information, Operation Management

Assignment Help:

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


Related Discussions:- Explain what is the expected value with perfect information

Definitions of performance measurement, Definitions of Performance Measurem...

Definitions of Performance Measurement 1. The first step in a business measurement process is to define the content and objectives of the business - this will help reveal whet

Explain virtual integration on healthcare organizations, What has been the ...

What has been the impact of horizontal, vertical, and virtual integration on healthcare organizations?

Describe how does national culture affect strategy, How does national cultu...

How does national culture affect strategy? To what extent do different approaches to strategy, different ways of thinking about strategy, reflect different underlying cultural assu

Explain upward communication, Explain Upward Communication. Upward Com...

Explain Upward Communication. Upward Communication: It moves in the form of feedback from subordinate to the superior.  It takes the forms of: - Reports through Subordinat

Why babysitters not need technology to compete, Lawyers, babysitters, and c...

Lawyers, babysitters, and construction companys. But why wouldn't they need technology to compete?

Describe types of financial statements, What are the three basic financial ...

What are the three basic financial statements, and what major information does each contain? If you were planning to invest in a company, which of the three types of financial stat

Explain organization''s structure and culture, Why would an organization ch...

Why would an organization choose a corporate level strategy to expand its value-creation activities beyond its core domain? Discuss how an organization's structure and culture migh

Sequencing.., program to find optimal sequence, total elapsed time and tota...

program to find optimal sequence, total elapsed time and total idle time in 6 jobs and 3 machines

Expected effectiveness of plan, Expected effectiveness of plan: Ramon ...

Expected effectiveness of plan: Ramon Martinez is the general manager of Classic Inn, a local mid-priced hotelwith 100 rooms. His job objectives include providing resourceful

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd