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

Turbine discs and blades of aircraft, Turbine Discs and Blades: The ins...

Turbine Discs and Blades: The inspection for cracks is of the utmost importance, most inspections are visual, the dye penetrant method of inspection being too impractical. Crac

Reaction engines - aircraft maintance, These can be divided into several ca...

These can be divided into several categories. Turbojet engines. The turbojet was the first type of jet engine developed. In this engine all the air passes through the core engin

Civil engg projects, wat r d new transportation based projects for d civil ...

wat r d new transportation based projects for d civil engg. students..??

Composition of two simple harmonic motion at straight line, show the practi...

show the practical use of it also descibe it elaborately why it is useful which way we can use it where we use it

Application to the axial flow compressor, APPLICATION TO THE AXIAL FLOW COM...

APPLICATION TO THE AXIAL FLOW COMPRESSOR: In order for the compressor to deliver a high mass airflow for a minimum effort required to drive it, it is important that all the com

Fuel distribution in aircraft design, Fuel Distribution During operatio...

Fuel Distribution During operation, fuel flows from the aircraft fuel tank to the fuel-pump boost-stage inlet. The pressurised fuel from the boost stage of the engine-driven fu

Basic electronics, A car battery is of 12 v. eight dry cells of 1.5 v each ...

A car battery is of 12 v. eight dry cells of 1.5 v each connected in series can give 12 v. but such cells are not used in starting a car. why?

Aviation legislation - registration of aircraft, Aviation legislation - REG...

Aviation legislation - REGISTRATION of AIRCRAFT: All aircraft must be registered in the U.K., before they are permitted to fly. They must also have their allotted registration

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