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Review the following scenario,and answer the questions: A market buys T-bone steaksfrom a university's animal science department. The purchase price is$2.50 per pound,and the market

Review the following scenario,and answer the questions:

A market buys T-bone steaksfrom a university's animal science department. The purchase price is$2.50 per pound,and the market sells the stick for$4.00per pound. Steak left over at the end of the week is sold to a local cannery for $0.50 per pound. According to sales records over the past 100 weeks, demand has beenas follows:

Weekly demand

Number of weeks

10

10

11

20

12

20

13

30

14

10

15

10

TOTAL

100

Construct a payoff table for the various demand and stocking quantities. Determine the best amount to stock using each of the following criteria:

a)Laplace

b)maximin

c)maximax

d)Hurwicz(a = 0.2)

e)regret (minimax)

If the market can obtain perfect information concerning the following week's demand for T-bone steak, what will the expected profit be? Determine the optimal stock quantity.

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