QUESTION THREE

XYZ informatics Corporation summarizes international financial information reports (on a weekly basis), prints sophisticated data and forecasts which are purchased weekly by mutual funds, banks and insurance companies. This information is very expensive and the demand for the report is limited to a maximum of 30 units per week. The possible demands are 0, 10, 20 or 30 reports per week. The profit per report sold is Kshs. 30 and the loss per report unsold at the end of a week is Kshs 20. No production of extra reports during a week is possible. Further, there is a penalty cost of Kshs. 250, for not meeting the demand.Unsold reports cannot be carried over to the next week. Using the payoff table, find out the number of reports to be produced if

i.Maximin strategy is adopted (4marks)

ii.Maximax strategy is adopted (4marks)

iii.Minimax strategy is adopted (3marks)

iv.Maximax regret criterion (3marks)