A paint company has three sources for buying bright red pigment for its paints: Vietnam, Taiwan, and 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 following tables show probabilities and prices for wet, dry, and normal growing seasons. Probabilities Vietnam Taiwan Wet Dry Normal 0.5 0.2 0.6 0.3 Thailand 0.4 0.4 Price/Pound ($) Vietnam 0.96 1.11 Taiwan 0.86 1.25 Wet Dry Normal Thailand 0.92 1.19 0.3 What country should the company select? O Thailand Taiwan Vietnam 0.1 0.2 1.05 0.99 1.06 What is the expected value (price) associated with it?
A paint company has three sources for buying bright red pigment for its paints: Vietnam, Taiwan, and Thailand. Unfortunately, the pigment is made from a bush whose annual growth is heavily dependent upon the amount of rainfall during the growing season. The following tables show probabilities and prices for wet, dry, and normal growing seasons. Probabilities Vietnam Taiwan Wet Dry Normal 0.5 0.2 0.6 0.3 Thailand 0.4 0.4 Price/Pound ($) Vietnam 0.96 1.11 Taiwan 0.86 1.25 Wet Dry Normal Thailand 0.92 1.19 0.3 What country should the company select? O Thailand Taiwan Vietnam 0.1 0.2 1.05 0.99 1.06 What is the expected value (price) associated with it?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter10: Introduction To Simulation Modeling
Section: Chapter Questions
Problem 36P: Dilberts Department Store is trying to determine how many Hanson T-shirts to order. Currently the...
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