• A certain output is manufactured at ksh.80 and sold at ksh.140 per unit. The product is such that if it is produced but not sold during a day’s time it becomes worthless. The daily sales records in the past are as follows:

Sales per day:      30        40        50        60        70

No of days:           24        24        36        24        12

• Prepare a payoff and a regret table[1 mark]
• Find the expected payoffs and regrets[1mark]
• Find the optimal act and the EVPI[1mark]
• Assuming an uncertain decision-making environment, which sales per day will be selected based on the following criteria
• Maximax[2marks]
• Minimax [2marks]
• Maximin regret[2marks]
• Laplace [2marks]
• Hurwitz assuming alpha is 0.6 [2marks]