What is the minimax regret and probabillity, Basic Statistics

Assignment Help:

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.

a) Construct a conditional payoff table.

b) What is the best decision according to the following criteria?

- Optimistic criterion

- Pessimistic criterion

- Equally likely

c) Construct an opportunity loss table.

d) What is the Minimax regret?

e) Assume the following probability distribution:

Demand

Probability

0 kg

.05

25 kg

.10

50 kg

.30

75 kg

.35

100 kg

.20


Related Discussions:- What is the minimax regret and probabillity

Statistics study, Find a statistics study (from a newspaper article, journa...

Find a statistics study (from a newspaper article, journal, research study, or online article) and describe the five-step process of the study. (Hint: it may help to identify the f

Index numbers, discuss the considerations to be borne in mind when construc...

discuss the considerations to be borne in mind when constructing index numbers

Index, Utility of index

Utility of index

Describing univeriate data, X 420 610 625 500 400 550 650 480 565 Y 2.80 3...

X 420 610 625 500 400 550 650 480 565 Y 2.80 3.60 3.75 3.00 2.50 2.70 3.50 3.90 2.0 2.95 3.30 Calculate te covarience anf the correlatio coeficient. Comment on the relationship be

Autocorrelation, at what p-value do we reject the null hypothesis for the D...

at what p-value do we reject the null hypothesis for the Dublin-Watson test

Time series, what are the importances of time series

what are the importances of time series

Methods of members, the A- frame is supported by a hinge at A and A roller ...

the A- frame is supported by a hinge at A and A roller at e

Definition of batch costing and methods, Batch costing and method of costin...

Batch costing and method of costing whereby identical units produced are treated as a single unit & the cost incurred is shown to the whole of that batch instead of each individual

Spectral Hydrogen Atom, Long before Bohr gave his theory of hydrogen atom, ...

Long before Bohr gave his theory of hydrogen atom, various scientists had observed experimentally, the spectral series of hydrogen atom. Bohr offered a theoretical explanation of t

F2 test distributed populations, What is F2 Test, These tests were based o...

What is F2 Test, These tests were based on the assumption that the samples were drawn from normally distributed populations, or more accurately that the sample means were normally

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