A newspaper boy buys magazines for Rs.13 each and sells them for Rs.18 each. He cannot return the unsold magazine. The past record of sales is as follows: 

Sales 23 24 25 26 27 28 29 30 Prob. .05 .10 .15 .30 .20 .10 .05 .05 

i) Prepare the opportunity loss table 

ii) Select the optimal act using expected opportunity loss criterion. 

iii) Find EVPI 

Answer rating: 100% (QA)

1 To prepare the opportunity loss table we need to calculate the profit or loss for each possible outcome For sales of 23 the profit is Cost 13 x 23 R... View the full answer