The concessions manager at our local college baseball game
must decide whether to have the vendors sell sun visors or umbrellas. There is
a 30% chance of rain, a 15% chance of overcast skies, and a 55% chance of
sunshine, according to the weather forecast where the game is to be held. The
manager estimates the following profits will result from each decision given
each set of weather conditions.

Weather Conditions

Decision Rain .30 Overcast .15 Sunshine .55

Sun visors $-500
$-200 $1,500

Umbrellas $2,000 0 -900

a. need to compute the expected value for each decision
and select the best one.

b. also need to develop the opportunity loss table and
compute the expected opportunity loss for each decision.