Sal De Carlo is the manager for food sales for Coyote Stadium. For each home game, Sal must decide how many hot dogs to have available for sale. The number of hot dogs sold depends on the games attendance. Sal pays $0.75 for each hot dog and $0.15 for each hot dog bun. Hot dogs are sold to fans during the game for $1.75. Any leftover hot dogs are sold to the mens dorms for $0.25 a piece. Sal estimates that demand for hot dogs for next weeks game will be either 10,000, 15,000, 20,000, or 25,000. Suppose that Sal has assigned the probabilities shown here for the different demand levels:

a. Set up the payoff table for Sals decision.

b. How many hot dogs would Sal order if he used each of the following criteria?

1. Maximax criterion

2. Maximin criterion

• 3. Minimax regret criterion

c. What are the expected values for each decision that Sal can make?

d. How much would Sal be willing to pay for perfect information about the number of hot dogs that will be demanded during next weeks game?