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What is the EMV for Option 1

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What is the EMV for Option 1 in the following decision table? States of nature. Alternatives S1 S2. p .3 .7. Option 1 15,000 20,000. Option 2 10,000 30,000

a. 15,000
b. 17,000
c. 17,500
d. 18,500
e. 20,000

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by

a. 10%
b. 20%
c. 25%
d. 40%
e. 50%

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1. 15000*.3 + 20000*.7 = 18500. Hence D is the correct ...

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