A Paint Company Has Three Sources for Buying Bright Red

question 9

Essay

A paint company has three sources for buying bright red pigment for their paints: Vietnam, Taiwan, or Thailand. Unfortunately, the pigment is made from a bush whose annual growth is heavily dependent upon the amount of rainfall during the growing season. The tables below show probabilities and prices for wet, dry, and normal growing seasons:
$\begin{array}{llll}&&\text { Probabilities }\\&\text { Wet }&\text { Dry } &\text { Normal }\\\text { Vietnam } & 0.5 & 0.2 & 0.3 \\\text { Taiwan } & 0.6 & 0.3 & 0.1 \\\text { Thailand } & 0.4 & 0.4 & 0 ?\end{array}$ $\begin{array}{lccc}&&\text { Price/Pound (\$) }\\&\text { Wet }&\text { Dry } &\text { Normal }\\\text { Vietnam } & 0.95 & 1.10 & 1.00 \\\text { Taiwan } & 0.85 & 1.20 & .98 \\\text { Thailand } & 0.90 & 1.5 & 1.05\end{array}$
a. Using decision tree analysis, what is the expected value (price) for Thailand?
b. What country should the company select, and what is the expected value (price) associated with it?

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Definitions:

Domination

The exercise of control or influence over others, often in a manner that restricts individual freedom and autonomy.

Competition

The rivalry among individuals or groups for resources, recognition, or advantage, which can drive innovation and efficiency but also lead to conflict and inequality.

Military Ranks

A system of hierarchical relationships in armed forces, police, intelligence agencies, or other institutions organized along military lines.

Personal Freedom

The right of individuals to make choices about their own lives without undue interference from external forces such as the government or society.