Content X + C learn.humber.ca/ultra/courses/_186175_1/cl/outline m RA Paused Update : Quantitative Methods - BSTA-320-D8A Tests and Quizzes Assignment #1 X X Management is also analyzing overage and underage costs. Overage costs are incurred when quantity produced exceeds demand, leading to wastage. Underage costs are stockout (or shortage) costs: the cost of lost contribution to profit when demand exceeds supply. Suppose the analysis resulted in the following payoff table for the bakery. Payoffs are costs in dollars. Low Demand Medium Demand High Demand Light 240 710 1,090 Production Moderate 880 240 1,000 Production Heavy 1,160 600 240 Production Determine best decision alternative and its associated payoff using each of the following criteria: Priv TerContent X + -> C learn.humber.ca/ultra/courses/_186175_1/cl/outline m RA Paused Update : Quantitative Methods - BSTA-320-D8A Tests and Quizzes Assignment #1 X X following criteria: a. the optimistic criterion Best Payoff = $ Decision: Select an answer b. the pessimistic/conservative criterion Best Payoff = $ Decision: Select an answer c. the equally likely criterion Best Average Payoff = $ Decision: Select an answer Priv TerContent X + C learn.humber.ca/ultra/courses/_186175_1/cl/outline m RA Paused Update : Quantitative Methods - BSTA-320-D8A Tests and Quizzes Assignment #1 X X d. the realism criterion with a = 0.3 Best Weighted Payoff = $ Decision: Select an answer e. the minimax regret criterion Minimax Regret = $ Decision: Select an answer Submit Question Priv Ter