1. Find P142. Find P413. Find O144. Find O41 5. What is the maximum EMV? (Two decimal) 6. What is the minimum EOL? 7. What is the optimal action?

Use the following information for Q1 to Q7 The owner of a magazine stand is trying to decide how many copies of Business Monthly to stock. He purchases copies for $0.90 and sells them for $2.5 each. If he has old magazines at the end of the month, they can be sent back to the publisher for $0.35 per magazine. The demand distribution for the magazine is given below: Number of magazines 45 50 55 60 Probability 0.20 0.25 0.25 0.30 Using purchase levels equal to possible demand levels, determine the number of magazines to be purchased for sale at the newsstand. Construct a payoff table, indicating all actions, states of nature, probabilities, payoffs, and EMV. Demand 45 50 55 60 EMV 45 P14 50 55 60 P41 Payoff Table Convert the above payoff table to opportunity loss table. Demand 45 50 55 60 EOL 45 O14 50 55 60 041