Use decision criterion to determine price that pizza charge

Assignment Help Basic Statistics

Reference no: EM13123784

Suppose that Pizza King and Noble Greek stop advertising but must determine the price they will charge for each pizza sold. Pizza King believes that Noble Greek's price is a random variable D having the following mass function: P(D = $8) = .25, P(D = $11) = .35, P(D = $13) = .4. If Pizza King charges a price p1 and Noble Greek charges a price p2, Pizza King will sell 110 + 15(p2-p1) pizzas. It costs Pizza King $3.5 to make a pizza. Pizza King is considering charging $5, $6, $8, $9, or $11 for a pizza. Use each decision criterion (maximin, maximax, minimax regret, expected value) to determine the price that Pizza King should charge."

Reference no: EM13123784

Questions Cloud

What is the limiting reactant : 3CuSO4 + 2Fe --> 3 Cu + Fe2(SO4)3 If you place .092 mol of iron filling in a solution containing .158 mol of CuSO4, what is the limiting reactant? How many moles of Cu will be formed.

What is the gross profit for the period : A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $12 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. If the company uses FIFO, what is the gross profit for..

Immediately after adam''s admission to the partnership : Immediately after Adam's admission to the partnership, Leah sells one-fourth of her interest to Denton for $35,000. Journalize the entry to record this transaction.

What was the final temperature : A gas was enclosed in a rigid-walled container. The initial temperature and pressure were 52°C and 0.55 atm, respectively. If the final pressure were 2.41 atm.

Use decision criterion to determine price that pizza charge : Use each decision criterion (maximin, maximax, minimax regret, expected value) to determine the price that Pizza King should charge.

Which plot should have the shortest harvest age : Should U.S. national forests become privatized (sold to private owners)? Why or why not? Be sure to back up your response with economic analysis and reasoning.

Strong leader : Many people believe that leaders are born, not made. However, anyone can be a strong leader as long as determination, open-mindedness, and optimism are learned and developed. First, determination is the key to becoming a strong leader. Determination ..

Disaster preparedness assignment : Disaster Preparedness Assignment . Select a vulnerable population in your community (,http://www.homelessshelterdirectory.org/cgi-bin/id/city.cgi?city=Brockton&state=MA etc.). Describe the population and explain why you have chosen it. Explain its l..

Fit a multiple linear regression equation : Use the equation to predict the value of a home measuring 1500 sq. ft. which is at a distance of 0.75 mile from the centre of the town.

User Account

All Pages