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

Petroleum Production.., 1. . Using the graph of pore/fracture pressure for ...

1. . Using the graph of pore/fracture pressure for the Holly Field propose a casing scheme for the well using the graphical approach. Discuss the suitability of the selected casing

Comparison of petrol engines and diesel engines, COMPARISON OF PETROL ENGIN...

COMPARISON OF PETROL ENGINES AND DIESEL ENGINES 1.      In petrol engine, a mixture of air and petrol is drawn into the cylinder and compressed, whereas in case of diesel eng

Lean enterprise, a department manufactures a produt using a kanban system. ...

a department manufactures a produt using a kanban system. data is demand/hr= 30, container size= 5, unit processing time= 1.25 min. find the minimum number of kanban assuming reple

X rays., how x rays are produced?

how x rays are produced?

NIRAN, Why spiral model is called meta model?

Why spiral model is called meta model?

Clamping circuit, draw and explain the working of a positive clamping circu...

draw and explain the working of a positive clamping circuit?

High rise buildings - fire protection engineering, High rise buildings: ...

High rise buildings: High rise buildings have their own particular requirements for fire safety and for fire fighting.  Means of escape rely on most people descending the stai

DIGITAL SIGNAL PROCESSING, PROBLEM BASED ON USING CHEBYSCHEV IIR FILTER USI...

PROBLEM BASED ON USING CHEBYSCHEV IIR FILTER USING BILINEAR TRANSFORMATION

Mass balance reactions, A continuous fractionating column separates benzene...

A continuous fractionating column separates benzene and toluene into two product streams. We were given all the mass fractions which makes this question easy because all we must ca

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