Lisa Runs a Local Flower Shop,if It Rains on Valentine's

question 5

Multiple Choice

Lisa runs a local flower shop,if it rains on Valentine's Day and she opens the shop,she will lose $200.If it does not rain on Valentine's Day,she will earn $500 dollars as profits.The chance of rain is 30%,what is Lisa's gain from perfect information about weather conditions on the forthcoming Valentine's Day?

• A)50
• B)60
• C)90
• D)150

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Definitions:

Trade-Offs

Situations requiring a choice between options that have different advantages and disadvantages, involving compromises.

Optimal Order

The most efficient or cost-effective quantity of goods to order, taking into account factors such as demand, holding costs, and ordering costs.

Available Capacity

The amount of production capability or service availability that can be provided over a certain period of time.

Multiple Products

The strategy or situation of offering or managing a variety of different products instead of focusing on a single offering.