11. In the Toy manufacturing company, suppose the product acceptance probabilities are not known. But the following data is known. Anticipated First Year Profit (3) Product Line Ful Partial Minima Product Acceptanc

11. In the Toy manufacturing company, suppose the product acceptance probabilities are not known. But the following data is known. Anticipated First Year Profit (3) Product Line Ful Partial Minima Product Acceptanc

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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11. In the Toy manufacturing company, suppose the product acceptance probabilities are not known. But
the following data is known.
Anticipated First Year Profit (3)
Product Line
Product
Acceptanc
€
Good
Fair
Poor
Ful Partial Minima
I
7
50
8
70
50 45
-25 -10
40
0
Determine the optimal decision under each of following decision enteria
a) Maximin criterion
c) Minimax regret criterion
b) Maximax criterion
d) Expected value critenon

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