An electronics shop is about to buy some laptop computers. They can be ordered from the...

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An electronics shop is about to buy some laptop computers. They can be ordered from the manufacturer at a cost of $800 each. The selling price will be set at $1100 each. Demand is estimated as being between 7 and 10 inclusive with probabilities 0.1 for 7, 0.3 for 8, 0.4 for 9, and 0.2 for 10. When a more technologically advanced computer becomes available any leftover of the current model will be marked down to $650 each (all leftover stock will sell with no problem at this price). (a) We wish to determine how many computers should be ordered, according to the following decision criteria: (i) Expected Value, (ii) pessimism, (iii) optimism, and (iv) Laplace. Do this by using a calculator to fill in all the numbers in the range B4:17 ), and state the four recommendations clearly. (b) Find the EV with PI, and the EVPI. (c) Repeat part (a) using Excel. Answer must be a screen grab of the Excel spreadsheet. No further explanation required. A 1 Buy 800 234 7 8 6 9 7 10 5 8 Prob. 9 B Sell 1100 7 0.1 C Salvage 650 8 0.3 D 9 0.4 E 10 0.2 F (a, i) EV G (ii) Pess. H (iii) Opt. I (iv) Laplace An electronics shop is about to buy some laptop computers. They can be ordered from the manufacturer at a cost of $800 each. The selling price will be set at $1100 each. Demand is estimated as being between 7 and 10 inclusive with probabilities 0.1 for 7, 0.3 for 8, 0.4 for 9, and 0.2 for 10. When a more technologically advanced computer becomes available any leftover of the current model will be marked down to $650 each (all leftover stock will sell with no problem at this price). (a) We wish to determine how many computers should be ordered, according to the following decision criteria: (i) Expected Value, (ii) pessimism, (iii) optimism, and (iv) Laplace. Do this by using a calculator to fill in all the numbers in the range B4:17 ), and state the four recommendations clearly. (b) Find the EV with PI, and the EVPI. (c) Repeat part (a) using Excel. Answer must be a screen grab of the Excel spreadsheet. No further explanation required. A 1 Buy 800 234 7 8 6 9 7 10 5 8 Prob. 9 B Sell 1100 7 0.1 C Salvage 650 8 0.3 D 9 0.4 E 10 0.2 F (a, i) EV G (ii) Pess. H (iii) Opt. I (iv) Laplace