Quantitative, finance, Other Engineering

Assignment Help:
Case 1: Decision Analysis
Flifla sells tomatoes every day in Suk al Marqazi, the downtown fruit and vegetable market. He finds that he can order tomatoes in crates of 25 kg and he is able to stock a maximum of four crates or 100 kg of tomatoes. His experience taught him that the daily demand ranges from 0 to100 kg of tomatoes. Flifla sells tomatoes at 1 dirham/kg. His cost is Dhs 0.70 per kg. Therefore, his profit is Dhs 0.30 per kg of tomatoes sold. For any unsold tomatoes, Flifla can sell them for Dhs 0.50 to a recycling firm that produces tomato paste. Flifla’s objective is to determine the quantity of tomatoes to buy each day to maximize his profits. Answer the following questions.
• Construct a conditional payoff table.
• What is the best decision according to the following criteria?
• Optimistic criterion
• Pessimistic criterion
• Equally likely
• Construct an opportunity loss table.
• What is the Minimax regret?
• Assume the following probability distribution:
Demand: 0 kg, 25 kg, 50 kg, 75 kg, 100 kg.
Probability: 0.05,0.10,0.30,0.35,0.20
What is the best decision according to the Expected Monetary Value?
• What is the best decision according to the Expected Opportunity Loss?
• What is the Expected Value of Perfect Information?

Related Discussions:- Quantitative, finance

Communication, Can u provide some information about simple wireless transmi...

Can u provide some information about simple wireless transmitter and receiver.

Sintering, Q. What is sintering ? Explain the stages of sintering. An...

Q. What is sintering ? Explain the stages of sintering. Ans. The operation of heating a green compact to an elevated temperature is known as sintering. It is a process by

Priority scheduling- operating system, Operating System Assignment# Priorit...

Operating System Assignment# Priority Scheduling leads to the risk of starvation: a process is ready, but never is given the processor. Some preemptive priority schedulers therefor

Guidance laws , The guidance law is used to generate a requirement (usually...

The guidance law is used to generate a requirement (usually an required acceleration) that will achieve the guidance objective. In this course, we will look at three main types

International finance, at the beginning of year 1 the terranian central ban...

at the beginning of year 1 the terranian central bank conducted k100 million of dollar selling/terranian kwacha buying intervention. The intervention was undertaken at the rate of

Risk Management, discuss the values of risk analysis and how it can help in...

discuss the values of risk analysis and how it can help in decision making of project management under conditions of uncertainty

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd