Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
can you do a-e please, thank you for your effort! O B IC CLICUIUI! 2. Aggie Theme Park Inc. must place an order for ponchos
can you do a-e please, thank you for your effort! O B IC CLICUIUI! 2. Aggie Theme Park Inc. must place an order for ponchos to sell to customers during rain + showers. Ponchos are sold for $1. The demand for ponchos depends on the level of rain in the summer. Rain for the summer may be light, normal, heavy or very heavy with probabilities of 0.20, 0.40., 0.25, and 0.15 respectively. Ponchos are purchased by the pallet. One pallet of 10,000 ponchos costs $5,000. Ponchos not sold at the end of the summer can be returned at a value of $0.20 each. Past experience shows that demand for a dry season is 13,000, a normal season is 19,000, a wet season is 28,000 and a very wet season is 36,000. a. Construct the payoff table for this problem. Justify your list of actions. b. What decision should be made according to the maximax decision rule? c. What decision should be made according to the maximin decision rule? d. What decision should be made according to the minimax regret decision rule? e. What decision should be made according to the expected value decision rule? OC T unglior
can you do a-e please, thank you for your effort!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started