12 2 lots 3 lots 223 Assume that the propabilities of low demand= 0.13 and meduim deman-0.60 By using the above information, the expected value for the best decision using expected value approaches

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section: Chapter Questions
Problem 9SGR
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LF company must decide how many lots of assorted ski wear to order for its three stores information on cost has led to the following payoff table
Demand
Medum
0.60
probability
order size
1 lot
2 lots
3 lots
Low
0.13
125
50
223
Assume that the propabilities of low demand= 0.13 and meduim deman=0.60
By using the above information, the expected value for the best decision using expected value approachi
WWWX
73
103
High
152
47
261
Transcribed Image Text:LF company must decide how many lots of assorted ski wear to order for its three stores information on cost has led to the following payoff table Demand Medum 0.60 probability order size 1 lot 2 lots 3 lots Low 0.13 125 50 223 Assume that the propabilities of low demand= 0.13 and meduim deman=0.60 By using the above information, the expected value for the best decision using expected value approachi WWWX 73 103 High 152 47 261
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