Build the payoff table for this decision situation.

In a space created below this part, you must present your payoff table

HERE.

Build the regret table for this decision situation.

In a space created below this part, you must present your regret table

HERE.

a$.$ In new lines entered below this part, state the best $($that is$,$ the optimal$)$

decision according to the expected value criterion for the appropriate

number of pounds of steak to consistently stock.

b$.$ In new lines entered below this part, state the dollar amount of the profit

expected from this decision.

a$.$ In new lines entered below this part, state the decision alternative

indicated by the maximum likelihood criterion. b$.$ In new lines entered below this part, state the dollar amount of the profit

from the maximum likelihood decision.

In new lines entered below this part, answer the following question: Are

the decisions alone $($not including the payoffs$)$ of parts $15$ and $16$ the same?

$($Yes or no$.)$ Whether they agree or not, explain why. $($Failure to explain why

will be penalized.$)$

Assume now that the probabilities given above are no longer valid.

a$.$ In new lines entered below this part, state the best decision if the

owner is an optimist.

b$.$ In new lines entered below this part, state the payoff from the best

decision if the owner is an optimist.

a$.$ In new lines entered below this part, state the best decision if the

owner wants to minimize his largest possible regret.

b$.$ In new lines entered below this part, state the payoff from the best

decision from using the above decision$-$making criterion.

a$.$ In new lines entered below this part, state the best decision if the

owner is a pessimist.

b$.$ In new lines entered below this part, state the payoff from the best

decision is a pessimist.

a$.$ In new lines entered below this part, state the best decision if the

owner wants to hedge between optimism and pessimism by using a

coefficient of optimism with the numerical value of $0\mathrm{.}60.$

b$.$ In new lines entered below this part, state the payoff from the best

decision using the above decision$-$making criterion.

In new lines entered below this part, state the dollar amount the owner

should be willing to pay to improve the decision over the best decision found

in part $15$ above.

In a space created below this part, you must present HERE a copy of

your Excel spreadsheet for problem B$.$

AND submit all of your computer files for this problem with your

completed exam to the "Final Exam" link on Bb$.$ Include in the

filename$/$tab name "Prob B$."$B$.$ The owner of a small specialty food store stocks specially aged steak. In the past

$100$ weeks, the store has experienced the following weekly demand for this steak

$($in pounds$)$:

The owner buys the meat from his supplier for $$2\mathrm{.}10$ per pound and sells the

steak for $$5\mathrm{.}00$ per pound. All that is left unsold at the end of the week is sold at

discount to the county animal shelter at $$0\mathrm{.}50$ per pound.

The food store owner wants to know how many pounds of steak to consistently

order per week.

NOTE: In parts $13,14,$ and $23$ you MUST provide copies of your tables and of

your Excel spreadsheet containing your calculations for this problem to

receive credit for problem B$.$ You are also reminded to submit all of

your computer files for this problem with your completed exam to the

"Final Exam" link on Bb$.$ Failure to provide any of these deliverables

will result in this problem NOT being scored.