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Please answer this above question :) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^ :3-32 Refer to the leasing decision facing Beverly Mills in Problem 3-31. Develop the opportunity loss table for
Please answer this above question :) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^
:3-32 Refer to the leasing decision facing Beverly Mills in Problem 3-31. Develop the opportunity loss table for this situation. Which option would be chosen based on the minimax regret criterion? Which alternative would result in the lowest expected opportunity loss? 13-31 Beverly Mills has decided to lease a hybrid car to save on gasoline + expenses and to do her part to help keep the environment clean. The car she selected is available from only one dealer in the local area, but that dealer has several leasing options to accommodate a variety of driving patterns. All the leases are for 3 years and require no money at the time of signing the lease. The first option has a monthly cost of $330, a total mileage allowance of 36,000 miles (an average of 12,000 miles per year), and a cost of $0.35 per mile for any miles over 36,000. The following table summarizes each of the three lease options: 3-YEAR MONTHLY MILEAGE COST PER EXCESS LEASE COST ALLOWANCE MILE Option 1 $330 36,000 $0.35 Option 2 $380 45,000 $0.25 Option 3 $430 54,000 $0.15Step by Step Solution
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