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Use the information given below for all questions about this scenario. Susie Wyatt sells UofM t-shirts on a stall near the graduation ceremony of UMFlint
Use the information given below for all questions about this scenario. Susie Wyatt sells UofM t-shirts on a stall near the graduation ceremony of UMFlint students. Some students in the graduating class or their parents like to buy a t-shirt. She gets the t-shirts made with UofM Flint designs from a supplier. Unsold t-shirts cannot be returned. It is very difficult for Susie to know exactly how many t-shirts will be sold, which makes it difficult for her to determine how many t-shirts to order from the supplier. Susie expects that if sales are low, she will be able to sell 20 dozen, if the sales are medium she will be able to sell 50 dozen and if the sales are high she will be able to sell 120 dozen of the t-shirts. Her options are: do nothing (do not place an order), order 20 dozen, order 50 dozen or order 120 dozen. Her payoffs for each ordering option and subsequent sales level are given below: What is her regret if she orders 120 dozen and the sales are medium? Hint: You may need to compute the regret table
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