[Solved] Product Tom is a highly perishable commodity which can be sold on the retail market for $20 per case or for animal food @ $1 per case
Product Tom is a highly perishable commodity which can be sold on the retail market for $20 per case or for animal food @ $1 per case. Tom costs $10 per case from the wholesale market and is only suitable for sale at the retail market for up to 24 hours after purchase.
Orders for ‘Tom’ must be placed in advance each day.
Amanda, a market stall owner, has kept the following records of sales of the Tom over the past 50 days.
Required:
(a) Prepare a summary that shows the forecast net margin earned by Amanda for each possible outcome. (6 marks)
(b) On the basis of maximising expected value, advise Amanda. (1 mark)
(c) On the basis of using the maximin and maximax criteria, advise Amanda. (4 marks)
(d) Use minimax regret to advise Amanda.(4 marks)
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Answer to Product Tom is a highly perishable commodity which can be sold on the retail market for $20 per case or for animal food @ $1 per case…..
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