QUESTION 11 Four Seasons Salad factory has to choose how many salads to make in advance each day before knowing the actual demand. There is a choice between 40, 50, 60 and 70 salads. The actual demand can also vary between 40, 50, 60 and 70 with the probabilities as shown in the table. Example, Prob of demand = 40 is 0.10. Given the follwoing payoff table with the profit or loss-for example, if he chooses to make 70 but demand is only 50, then he will make a loss of $60. Daily Demand Probability 40 salads 50 salads 60 salads 70 salads 40 salads 0.10 $80 $0 5(80) $(160) Daily Supply 50 salads 0.20 $80 $100 $20 $(60) 0.40 $80 $100 $120 $40 60 salads 70 salads 0.30 $80 $100 $120 $140 The question is then which output level to choose using MaxiMin 70 salads with a profit $80 40 salads with a loss $160 50 salads with a loss 560 60 salads with profit $80