The Video Game Supply Company (VGS) is deciding whether to set production next year at 2,000, 2,500, or 3,000 games. Demand could be low, medium, or high. Using historical data, VGS estimates the probabilities as 0.4 for low demand, 0.3 for medium demand, and 0.3 for high demand. The following profit payoff table (in $100s) has been developed: 
a.Determine the expected value of each alternative and indicate what should be the production target.
b.Determine the expected value with perfect information about the states of nature.
c.Determine the expected value of perfect information.
Definitions:
Shareholder Value
The financial worth delivered to shareholders, typically measured by the increase in share price and dividends paid over time.
Capital Adequacy Ratio
A measure of a bank's capital, used to protect depositors and promote stability and efficiency in financial systems.
Invested Capital
Represents the total amount of money that shareholders and debt holders have invested in a company.
Gross Assets
The total value of all assets owned by an entity before deducting any liabilities or depreciation.
Q4: An important recommendation of the Dietary Guidelines
Q18: Refer to Exhibit 17-2. The forecast for
Q30: A comparative study of organic and
Q38: The compound that gives hot peppers their
Q48: A person with heart disease is told
Q50: When making food choices, the best types
Q51: A stratified simple random sample has been
Q59: The time series pattern that reflects a
Q62: A student used multiple regression analysis to
Q66: Refer to Exhibit 10-12. The 95% confidence