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

Define Thermal equilibrium, Thermal equilibrium The definition and measurem...

Thermal equilibrium The definition and measurement of temperature must be logically preceded by the concept of thermal equilibrium and the Zeroth law. To determine operationally wh

Coding system, What is the possible problem if there is more than one part ...

What is the possible problem if there is more than one part having the same code?

Probabilistic analysis - fire risk assessment , Probabilistic analysis - Fi...

Probabilistic analysis - Fire risk assessment: Probabilistic analysis relies on data and data comes from experience.  The broader the experience, the larger the data source an

Detection and removal of shadow from an image, plz give an exact method for...

plz give an exact method for the detection and removal of shadow from an image

Acoustic linings in aircraft engine, Acoustic linings in Aircraft engine: ...

Acoustic linings in Aircraft engine: One method of suppressing the noise from the fan stage of a high by-pass ratio engine is to incorporate a noise absorbent liner around the

Engine drains, ENGINE DRAINS. There are two types of drains: • Con...

ENGINE DRAINS. There are two types of drains: • Controlled drains - the result of normal operation. • Uncontrolled drains - the result of abnormal operation. CONTROLLE

Hot and cold working, the amount of cold working metal can withstand is dir...

the amount of cold working metal can withstand is directly related to which properties? name two and also discuss the effect that cold working has upon these properties?

Cash flow diagrams, Cash Flow Diagrams We will use a cash flow approac...

Cash Flow Diagrams We will use a cash flow approach to analyze the flow of money through out a planning horizon. A cash flow occurs when money actually change hands. We will u

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