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20:38 © E 3 ااا ااا 43 Y Strong for Riesling 0.70 45 Recommendation using expecteel value approach to maximame expected annual probit is were explained جاهلان Chegg Writing lab closed? Get plagiarism checks expert paper help & more when Use Chegg Writing It is stated that the revenue projects shougsan annual con stribution to probit of $20,000. s hill Plante only chardonnay grapejando demand is stong for chardonnay wine. calculate the expected value for all alternatives. as shown below: Expected value (plant chardonnay) 30:55(20.000) +0.45(70.000) = '11.000 + 31.500 42.500 Expected value (plant bothgraphes) = 0.05 * $2240-50 X 40 +0.25 x 26X0-20X60 396600 & xpected value (plant Riesling) = 0.30x25 +0.70845 In 39,000. planting c graphs is givion highest expected value that is 42,500. Thus, Planting graru-cis recommended Now under the changes probabilitics, calculate the expected value as shown below Expected value (plant both graphes) -0.05 * 22 +0.50 x 40+0.05x26+0:40 X 60 = 46.400 Expected value (plant Riesling) = 0.10% 2540.90 * 45 = 43,000 The optimal solution is to plant botherapes because it is giving highest payobb Olalin lantivel ...
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