Question
Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs has
Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands.
Demand | |||
Order Size | Low | Medium | High |
1 lot | 12 | 15 | 15 |
2 lots | 9 | 25 | 35 |
3 lots | 6 | 35 | 60 |
a. | What decision should be made by the optimist? |
b. | What decision should be made by the conservative? |
c. | What decision should be made using minimax regret? |
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Get StartedRecommended Textbook for
Statistical Techniques in Business and Economics
Authors: Douglas A. Lind, William G Marchal
17th edition
1259666360, 978-1259666360
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