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

Climbing drum peel test , Climbing Drum Peel Test The CDP test works by a...

Climbing Drum Peel Test The CDP test works by attaching a free end of a face sheet of a sandwich panel to a drum which then rolls across the panel, peeling off the face sheet. A

Pitch lock mechanism, PITCH LOCK MECHANISM The pitch lock mechanism is ...

PITCH LOCK MECHANISM The pitch lock mechanism is necessary to cater for the two fine pitch position of 'flight fine pitch' and 'ground fine pitch'. It acts as a safety device

Environmental engineering question, The town of Smog, Idaho is located in a...

The town of Smog, Idaho is located in a river valley and has a footprint of 6 km x 2 km. It has an average daily emission rate of 1000 kg/day of PM2.5 into the atmosphere from wood

Systems Engineering, critically analyses the system design process of a pro...

critically analyses the system design process of a project for a light railway link for a city

Compressor stall and surge of aircraft, Compressor stall and surge: ‘Su...

Compressor stall and surge: ‘Surge' can occur in both centrifugal and axial flow compressors and is the reversal of the airflow in the compressor. It is a very undesirable con

..Evans Diagram, would you help with Evans diagram( draw and explain) for I...

would you help with Evans diagram( draw and explain) for Iron in seawater,and how variability of Oxygen concentration affect the electrode potential vs.current?

Tube drawing, Drawing operation can also be used for reducing the tube cros...

Drawing operation can also be used for reducing the tube cross-section. The drawing equipment consists of draw bench and die. One end of the tube is pulled through the die over a f

Classifications of moulding sands, 1. Generally moulding sands can be class...

1. Generally moulding sands can be classified as:           (a) Natural Sand           (b) Synthetic or High Silica Sand           (c) Chemically Coated Sand

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