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A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it

A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the answer using the criterion of minimax regret? PROFIT ($) Large Average Small Alternatives Crowd Crowd Crowd Large Inventory $220,000 $50,000 -$2,000 Small Inventory $90,000 $70,000 -$5,000 Probability .20 .50 .30 A) -$2,000 B) $130,000 C) $0 D) $20,000 E) $153,400

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