Question: A) How many cases should be purchased using the maximum and maximin criterion? Show your work and calculations. B) If Jean uses the Expected Monetary

A) How many cases should be purchased using the maximum and maximin criterion? Show your work and calculations.

B) If Jean uses the Expected Monetary Value and Expected Opportunity Loss Criterion, how many cases should be purchased? Show your work and calculations.

C) What is the expected value of perfect information (EVPI)? Show your work and calculations.

9.3. Jean Clark is the manager of the Midtown Saveway Grocery Store. She now needs to replenish her supply of strawberries. Her regular supplier can provide as many cases as she wants. However, because these strawberries already are very ripe, she will need to sell them tomorrow and then discard any that remain unsold. Jean estimates that she will be able to sell 10, 11, 12, or 13 cases tomorrow. She can purchase the strawberries for $3 per case and sell them for $8 per case. Jean now needs to decide how many cases to purchase. Jean has checked the store's records on daily sales of strawberries. On this basis, she estimates that the prior probabilities are 0.2, 0.4, 0.3, and 0.1 for being able to sell 10, 11, 12, and 13 cases of strawberries tomorrow

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