What Is the EMV for Option 2 in the Following

question 49

Multiple Choice

What is the EMV for Option 2 in the following decision table?
$$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { States of Nature } } \\\begin{array} { | l | c | c | } \hline \text { Alternatives } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } \\\hline \mathrm { p } & .6 & .4 \\\hline \text { Option 1 } & 200 & 300 \\\hline \text { Option } 2 & 50 & 350 \\\hline\end{array}$$

• A) 50
• B) 100
• C) 170
• D) 200
• E) 350

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Definitions:

Aggregate Plans

Strategies for allocating resources in production to meet expected demand over a medium-term time frame, focusing on balancing supply with demand.

Planning Period Cost

The total expenses associated with planning and executing operations over a specific period, including materials, labor, and overhead.

Stockout

A situation in which the demand or request for a product cannot be fulfilled because the item is not in stock, leading to potential loss of sales.

Capacity Utilization

The percentage of a firm's total production capacity that is actually being used in the production of goods or services.