DEMAND

                                     
LOW
                         HIGH

Alternative 1
$          10,000
                     $30,000

Alternative 2 $
         5,000
                      $40,000

Alternative 3 $
          2,000
                      $50,000

The probability of low demand is 0.4, whereas the probability of
high demand is 0.6.

a) What is the highest possible expected monetary value?

b) What is the expected value under certainty?

c) Calculate the expected value of perfect information for this
situation.