3: (20 MARKS) A bookstore sells a particular book of tax laws for Rs 100. It purchases the book for Rs 80/- per copy. Since some of the tax laws change every year, the copies unsold at the end of a year become outdated and can be disposed off for Rs 30 each. The following information are also provided: Possible Events (E) E1: 18 copies are demanded, E2: 19 copies are demanded, E3: 20 copies are demanded, E4: 21 copies are demanded, Courses of Action (A) A1: Buy 18 copies, A2: Buy 19 copies, A3: Buy 20 copies, A4: Buy 21 copies, E5: 22 copies are demanded, E6: 23 copies are demanded. A5: Buy 22 copies, A6: Buy 23 copies, Further assume that the order of this book can be placed only once during the year. REQUIRED: (a) Compute the pay-offs for all combinations of E and A. (b) Derive the opportunity loss table from your answer in part (a). (c) Calculate the expected pay-offs for the different courses of action (d) Determine the profits using the maximin and maximax principles. 111