Optimist, conservative and minimax regret methods

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Reference no: EM1378344

Question: Lakewood Fashions must decide how many lots of assorted ski wear to order for its 3-shopes. Data on pricing, sales, and inventory expenses has led to the following payoff table, in thousands.

Demand
Order Size Low Medium High
1 lot 12 15 15
2 lots 9 25 35
3 lots 6 35 60

a. What decision should be made by the optimist?
b. What decision should be made by the conservative?
c. What decision should be made using minimax regret?

Reference no: EM1378344

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