Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a
Dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per
Dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen
Roses.The number of states of nature for the payoff table is

Question

Quizplus · Accepted Answer

The states of nature refer to the possible demand scenarios for the roses. Since the owner can purchase 100, 200, or 400 dozen roses, there are three possible demand scenarios corresponding to these quantities.

Blossom's Flowers Purchases Roses for Sale for Valentine's Day