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

Deadlock based problem in operating system, Deadlock based problem in opera...

Deadlock based problem in operating system# Deadlock usually occurs between a known set of processes that end up waiting on each other. If we cannot prevent or avoid deadlock, anot

Derive, derive the power in case of r-l circuit

derive the power in case of r-l circuit

Fire risk assessment in uk - fire protection engineering, Fire risk assessm...

Fire risk assessment in UK: In the UK FRAs are required by law in all commercial premises.  But the FRAs are not the same as described in NFPA 551.  The principles remain the

Commercial buildings - fire protection engineering, Commercial buildings - ...

Commercial buildings - fire protection engineering: The term 'commercial buildings' refers to any buildings that are not residential buildings and that do not fall under the m

Casting, Casting means the pouring of molten metal into a mould, where soli...

Casting means the pouring of molten metal into a mould, where solidification occurs. Advantages of Casting Process          (i) It is the cheapest method of fabrication.

Semiconductor basics summary, N-type (for example add Antimony) The are...

N-type (for example add Antimony) The are materials which have Pentavalent impurity atoms (Donors) added and conduct by the "electron" movement and are called as N-type Semi

4 bit comparator, process / description.. if I put A=1000 and B=0100 A>B ga...

process / description.. if I put A=1000 and B=0100 A>B gate will show output 1 and dose A

Water supply design, what is the use of HEC-HMS modelling in water supply s...

what is the use of HEC-HMS modelling in water supply system ,how we use it? what is the necessary input for the software?

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