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1 list 2 K A chain of ski equipment shops purchases skis from a manufacturer each summer for the coming winter season. The most popular
1 list 2 K A chain of ski equipment shops purchases skis from a manufacturer each summer for the coming winter season. The most popular intermediate model costs $125 and sells for $300. Any skis left over at the end of the winter are sold at the store's spring sale (for $100). Sales over the years have been quite stable. Gathering data from all its stores, the chain developed the given probability distribution for demand. The manufacturer will take orders only for multiples of 20, so the chain is considering the following order sizes: 140, 160, 180, 200, 220. Complete parts a through c below. Click the icon to view the probability distribution for demand. 3 4 a. Construct a payoff table for the ski equipment chain's decision problem of how many pairs of skis to order. What is the best decision from an expected value basis? (Type integers or decimals. Do not round.) Order 125 5 140 160 180 6 200 SSSS $ $ 220 S Demand 150 175 200 es $ 10 S $ SS 10 S SS $ 10 Probability distribution for demand Demand Probability 125 0.13 150 0.30 175 0.29 200 0.20 225 0.08 Print Done - 225 S $ $ $ SS ver
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