Question
George Lassiter creates and sells special event T-shirts for rock concerts, major sporting events, and special fund raising events. Lassiter's present dilemma is how many
George Lassiter creates and sells special event T-shirts for rock concerts, major sporting events, and special fund raising events. Lassiter's present dilemma is how many T-shirts to order for an upcoming concert. He has high, medium, and low estimates of the expected attendance at the concert, and high, medium, and low estimates of the popularity of the shirts, expressed as the percentage of concert goes who will buy a T-shirt. Lassiter is also able to assess the relative likelihood of each estimate. The silk screener/shirt supply house with which he has worked for several years requires order quantities in multiples of 2,500, with discounts for greater quantities. Lassiter must decide whether to order 5,000, 7,500, or 10,000 shirts.
What are the possible Financial Outcomes if Lassiter orders 5,000 T-Shirts? 7,500 T-Shirts? 10,000 T-Shirts?
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