1. A certain output is manufactured at ksh.80 and sold at ksh.140 per unit. The product is such that if it is produced but not sold during a days time it becomes worthless. The daily sales records in the past are as follows:

Sales per day: 30 40 50 60 70

No of days: 24 24 36 24 12

1. Prepare a payoff and a regret table[1 mark]
2. Find the expected payoffs and regrets[1mark]
3. Find the optimal act and the EVPI[1mark]
4. Assuming uncertainty decision making environment, which sales per day will be selected based on the following criteria

1. Maximax[2marks]
2. Minimax [2marks]
3. Maximin regret[2marks]
4. Laplace [2marks]
5. Huwicz assuming alpha is 0.6 [2marks]