TABLE 19-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature
-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.Given 0.2,0.4,and 0.6 are the probabilities for the sale of 100,200,or 400 dozen roses,respectively,then the EMV for buying 200 dozen roses is
A)$4,500.
B)$2,500.
C)$1,700.
D)$1,000.

Question

TABLE 19-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature  
-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.Given 0.2,0.4,and 0.6 are the probabilities for the sale of 100,200,or 400 dozen roses,respectively,then the EMV for buying 200 dozen roses is
A)$4,500. 
B)$2,500. 
C)$1,700. 
D)$1,000.

Quizplus · Accepted Answer

The Answer of TABLE 19-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature  
-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.Given 0.2,0.4,and 0.6 are the probabilities for the sale of 100,200,or 400 dozen roses,respectively,then the EMV for buying 200 dozen roses is
A)$4,500. 
B)$2,500. 
C)$1,700. 
D)$1,000.

TABLE 19-1 The Following Payoff Table Shows Profits Associated with a Set