A Paint Company Has Three Sources for Buying Bright Red

Essay

A paint company has three sources for buying bright red pigment for their paints: Vietnam, Taiwan, or Thailand. Unfortunately, the pigment is made from a bush whose annual growth is heavily dependent upon the amount of rainfall during the growing season. The tables below show probabilities and prices for wet, dry, and normal growing seasons:
$\begin{array}{llll}&&\text { Probabilities }\\&\text { Wet }&\text { Dry } &\text { Normal }\\\text { Vietnam } & 0.5 & 0.2 & 0.3 \\\text { Taiwan } & 0.6 & 0.3 & 0.1 \\\text { Thailand } & 0.4 & 0.4 & 0 ?\end{array}$ $\begin{array}{lccc}&&\text { Price/Pound (\$) }\\&\text { Wet }&\text { Dry } &\text { Normal }\\\text { Vietnam } & 0.95 & 1.10 & 1.00 \\\text { Taiwan } & 0.85 & 1.20 & .98 \\\text { Thailand } & 0.90 & 1.5 & 1.05\end{array}$
a. Using decision tree analysis, what is the expected value (price) for Thailand?
b. What country should the company select, and what is the expected value (price) associated with it?