Abc company a soft-drink vendor has created a table of, Ask an Expert

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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

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9379442

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