A,Historical records show that 60 percent of the winters in the Rocky Mountains are snowy. How many pairs of skis should the ski shop order? b. The Rocky Mountain Weather Service Company claims that they can supply a perfect long- range weather forecast for $500. The forecast is based not only on historical trends but also on the scientific extension of present-day weather patterns. Should this service be purchased?
Do part a and b of the Higgenbottom Skis problem
Use this payoff table
Snowy Not Snowy
2000K 60000 60000
3000K 90000 50000
4000K 120000 40000
ALSO, calculate EVPI