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

Propeller construction, PROPELLER CONSTRUCTION METAL PROPELLERS Mo...

PROPELLER CONSTRUCTION METAL PROPELLERS Most metal propellers have forged alloy blades protected from corrosion by anodising and often further protected by polyurethane en

patch antenna, how to make patch antenna for wifi applicatoi

how to make patch antenna for wifi applicatoin

Effects of temperature and altitude on engine, Effects of Temperature and A...

Effects of Temperature and Altitude. Cold and/or Low On cold days the air density will increase. If the engine has a ‘part throttle rating' and the throttle is advanced to

Communication and scholarship, Illustrate the importance of communication i...

Illustrate the importance of communication in a retail business organisation?25 marks

CDMA, In a CDMA system, the signal is spread over a large bandwi...

In a CDMA system, the signal is spread over a large bandwidth by multiplying the transmitted symbol by a sequence of short pulses, also called chips. The

Homework, 1) An investment project requires a net investment of $100,000. T...

1) An investment project requires a net investment of $100,000. The project is expected to generate annual net cash flows of $28,000 for the next 5 years. The firm''''s cost of cap

An essay on power train, Interior noise is basically airborne or structure-...

Interior noise is basically airborne or structure-borne. The excitation sources of vibratation and noise from engines can be divided as mechanical, combustion, and flow sources.

Lead time, Enumerate possible impact of having inadequate system design in ...

Enumerate possible impact of having inadequate system design in the lead time and engineering cost?

Vectors and Scalar., Application of Vector and Scalar quantities in Vector ...

Application of Vector and Scalar quantities in Vector Analysis subject

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