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Please, develop answer on Excel with formulas visible The Operations Officer of a publishing company is considering whether to order 50,000 books or 100,000 books
Please, develop answer on Excel with formulas visible
The Operations Officer of a publishing company is considering whether to order 50,000 books or 100,000 books for a new novel that is being released. She can estimate the payoff associated with each alternative, shown in the following payoff table (000's of dollars). POSSIBLE FUTURE DEMAND 40,000 in Sales 90,000 in Sales Pre-Order Alternatives 50,000 Books 180 210 100,000 Books 110 550 0 0 Pre-Order No Books a. The manager is unsure what future demand will be. What decision should she make following the maximin, maximax, and minimax decision rule for uncertainty? b. The manager has received market data to suggest a 65% chance that no more than 40,000 books will be sold. Using the expected monetary value decision-making criteria, what alternative decision should she make? The Operations Officer of a publishing company is considering whether to order 50,000 books or 100,000 books for a new novel that is being released. She can estimate the payoff associated with each alternative, shown in the following payoff table (000's of dollars). POSSIBLE FUTURE DEMAND 40,000 in Sales 90,000 in Sales Pre-Order Alternatives 50,000 Books 180 210 100,000 Books 110 550 0 0 Pre-Order No Books a. The manager is unsure what future demand will be. What decision should she make following the maximin, maximax, and minimax decision rule for uncertainty? b. The manager has received market data to suggest a 65% chance that no more than 40,000 books will be sold. Using the expected monetary value decision-making criteria, what alternative decision should she makeStep by Step Solution
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