| Inventory and Profitability Analysis | ||||||||
| Decision Tables | ||||||||
| Data | Results | |||||||
| Profit | Large Crowd | Average Crowd | Small Crowd | EMV | Minimum | Maximum | ||
| Probability | 0.3 | 0.5 | 0.2 | |||||
| Large Inventory | $ 20,000 | $ 10,000 | $ (2,000) | $ 10,600 | $ (2,000) | $ 20,000 | ||
| Average Inventory | $ 15,000 | $ 12,000 | $ 6,000 | $ 11,700 | $ 6,000 | $ 15,000 | ||
| Small Inventory | $ 9,000 | $ 6,000 | $ 5,000 | $ 6,700 | $ 5,000 | $ 9,000 | ||
| Maximum | 11700 | 6000 | 20000 | |||||
| Expected Value of Perfect Information | ||||||||
| Column best | 20000 | 12000 | 6000 | 13200 | <-Expected value under certainty | |||
| 11700 | <-Best expected value | |||||||
| 1500 | <-Expected value of perfect information | |||||||
| Regret | ||||||||
| Large Crowd | Average Crowd | Small Crowd | Expected | Maximum | ||||
| Probability | 0.3 | 0.5 | 0.2 | |||||
| Large Inventory | 0 | 2000 | 8000 | 2600 | 8000 | |||
| Average Inventory | 5000 | 0 | 0 | 1500 | 5000 | |||
| Small Inventory | 11000 | 6000 | 1000 | 6500 | 11000 | |||
| Minimum | 1500 | 5000 | ||||||
| From the above tables, we see that having the average inventory yields the best EMV. | ||||||||
| The expected value of perfect information is $1,500. | ||||||||