Question
The manager of a grocery store needs to decide on the order of ice cream for a specific summer day. The possible order sizes are
The manager of a grocery store needs to decide on the order of ice cream for a specific summer day. The possible order sizes are 500, 800 and 1000 quarts. The sales of ice cream depend heavily on the weather. Based on past experience, the manager knows that the sales of ice cream will be as follows: Weather-below normal 500 quarts, weather normal-800 quarts, weather above normal 1000 quarts. The store buys ice cream for $4 per quart and sells it for $6 per quart. The unsold ice cream at the end of the day must be thrown out. Construct the payoff table, Construct an opportunity loss table.
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