The owner of a small specialty food store stocks specially aged steak. In the past 100 weeks, the store has experienced the following weekly demand for this steak (in pounds):

Weekly Demand (pounds)	Frequency (weeks)
20 25 40 60	10 30 50 10

The owner buys the meat from his supplier for $2.00 per pound and sells the steak for $5.00 per pound. Whatever is left unsold at the end of the week is sold at discount to the county animal shelter at $0.50 per pound.

The food store owner wants to know how many pounds of steak to consistently order per week.

1. In new lines entered below this part, state the best (that is, the optimal) decision according to the expected value criterion for the appropriate number of pounds of steak to consistently stock.

b. In new lines entered below this part, state the dollar amount of the profit expected from this decision.

2. a. In new lines entered below this part, state the decision alternative indicated by the maximum likelihood criterion.

b. In new lines entered below this part, state the dollar amount of the profit from the maximum likelihood decision.

3. In new lines entered below this part, answer the following question: Are the decisions alone (not including the payoffs) of parts 3 and 4 the same? Whether they agree or not, explain why. (Failure to explain why will be penalized.)

4. Assume that the probabilities given above are no longer valid.

a. Using the maximax criterion,

1. In new lines entered below this part, state the best decision.

2. In new lines entered below this part, state the dollar value of the corresponding payoff.

b. Using the minimax regret criterion,

1. In new lines entered below this part, state the best decision.

2. In new lines entered below this part, state the dollar value of the corresponding payoff.

c. Using the Hurwicz condition with a = 0.30,

1. In new lines entered below this part, state the best decision.

2. In new lines entered below this part, state the dollar value of the corresponding payoff.