Document2 - Word References Mailings Review View Help Tell me what you want to do AaBbCcDd AaBbCcDd AaBbC( AaBbCct Aa B AaBbCCD AaBbCcDd 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Paragraph Styles e installed, but first we need to close some apps. Update now CCT:17 T 18 12 21.414 0.841 W 20 13 21.635 0.924 Th 22 14 21.856 1.007 F 26 15 22.077 1.178 a. Use the specific values given above and compute the daily seasonal index. (4 marks) b. Seasonally adjust the value of sales on Monday of week 3. (2 marks) Question Three (8 marks) A specialty cheese producer makes a unique cheese spread for special occasions. The producer must decide whether to produce 7, 8, 9, or 10 cases of the unique spread. The cost to produce a case is $50 and the case retails for $90. Any unsold cases at the end of the month must be sold at 75% off the regular price. The probabilities associated with selling 7, 8, 9, or 10 cases are 0.21, 0.29, 0.39 and 0.11, respectively. a. Construct a payoff table based on the above information. (4 marks) b. Based on the EMV criterion, how many cases of the unique cheese spread should be produced? (2 marks) C . A consultant has offered to forecast the market for this unique cheese spread for a fee of $185. Should the company accept the offer? Explain. (2 marks) P3 WE DELL F4 F5 F6 F7 F8 UX F9 F10 F11Document2 - Word References Mailings Review View Help Tell me what you want to do AaBbCcDd AaBbCcDd AaBbC( AaBbCct Aa B AaBbCCD AaBbCcDd 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Paragraph Styles e installed, but first we need to close some apps. Update now CCT:17 T 18 12 21.414 0.841 W 20 13 21.635 0.924 Th 22 14 21.856 1.007 F 26 15 22.077 1.178 a. Use the specific values given above and compute the daily seasonal index. (4 marks) b. Seasonally adjust the value of sales on Monday of week 3. (2 marks) Question Three (8 marks) A specialty cheese producer makes a unique cheese spread for special occasions. The producer must decide whether to produce 7, 8, 9, or 10 cases of the unique spread. The cost to produce a case is $50 and the case retails for $90. Any unsold cases at the end of the month must be sold at 75% off the regular price. The probabilities associated with selling 7, 8, 9, or 10 cases are 0.21, 0.29, 0.39 and 0.11, respectively. a. Construct a payoff table based on the above information. (4 marks) b. Based on the EMV criterion, how many cases of the unique cheese spread should be produced? (2 marks) C . A consultant has offered to forecast the market for this unique cheese spread for a fee of $185. Should the company accept the offer? Explain. (2 marks) P3 WE DELL F4 F5 F6 F7 F8 UX F9 F10 F11