Andrew Thomas Sandwich Vendor Hard Rock Cafe S Annual Rockfest Created Table Conditional V Q34302754

Andrew Thomas, a sandwich vendor at Hard Rock Cafe’s annualRockfest, created a table of conditional values for the variousalternatives (stocking decisions) and states of nature (size ofcrowd):

States of Nature (demand)

AlternativesBigAverageSmallLarge stock24,00014,000-2,000Average stock12,0009,0006,000Small stock9,0008,1004,000

The probabilities associated with the states of nature are 0.25for a big demand, 0.55 for an average demand, and 0.20 for a smalldemand.

The alternative that provides Andrew Thomas the greatestexpected monetary value (EMV) is ____.

The EMV of this decision is $___ (enter your answer as a wholenumber)

The expected value of perfect information (EVPI) for AndrewThomas is $___ (enter your answer as a whole number)

Expert Answer

EMV of Large