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

Organic, What happened when melonic acid heated

What happened when melonic acid heated

Synchro resolvers for low load, Synchro resolvers for low load: Both tr...

Synchro resolvers for low load: Both transmitter and receiver rotors are energised by the same AC supply and will induce equal and opposing voltages in the stator coils provide

Structural engineering, The closed form solutions for ?max and Mmax are giv...

The closed form solutions for ?max and Mmax are given on page 16.1-276 for several axial loads. Figure C-C2.2 summarizes the results for the first benchmark problem and Figure C-C2

Flow at low mach number and zero incidence about m6 wing, Flow at low Mach ...

Flow at low Mach number and zero incidence about M6 wing Results from FP were obtained corresponding to M ∞ = 0.2 and a = 0 and, as noted, with the input files generated by FP

TANGENT GALVANOMETER, WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH I...

WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH INCREASING OR DECREASING CURRENT?

Digital electronics, i got a msg from u is that Dear Tutor ...

i got a msg from u is that Dear Tutor Congratulations!! You are successfully done with the process of quality check, now we are sending you the registration form

Recovery and recrystallization, Q. What is Recovery and Recrystallization? ...

Q. What is Recovery and Recrystallization? Ans. Due to the cold working of metals there arise a large number of dislocations and distortion of planes. Cold working of metals

Presintering, Presintering is an operation in which the powder metallurgy ...

Presintering is an operation in which the powder metallurgy components after compaction are heated for a short time to a temperature considerably below the final sintering tempera

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