A Paint Company Has Three Sources for Buying Bright Red

question 20

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:

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:

Check Box

A graphical user interface element that permits the user to make a binary choice, typically yes/no or true/false.

Subtotal

A mathematical function or formula used to sum up a group of numbers, often used in data analysis and accounting.

Form Controls

User interface elements like buttons, checkboxes, and text fields that allow users to input or manipulate data in forms.

Border

A line or frame that surrounds an element in a document or graphic, defining its limits or separating it from others.