Given the following pay-off table

Question 4 What is the optimal decision if you use the minimax regret criterion? Group of answer choices

a. Order 280 books

b. Order 320 books

c. Order 360 books

d. Order 400 books

Question 5 If the probabilities of the following events are given P (7 classes offered) = 0.1 P (8 classes offered) = 0.3 P (9 classes offered) = 0.4 What is the Expected Monetary Value of ordering 360 books? Group of answer choices

a. 3268

b. 2648

c. 3233

d. 2455

Question 6 What is the Expected Regret of ordering 400 books? Group of answer choices

a. 300

b. 200

c. 260

d. 320

Question 7 What is the value of perfect information? 

a. 112

b. 212

c. 300

d. 200
 

Transcribed Image Text:

Number of Text Book to Order 280 320 360 400 Number of Introductory Economics Classes Offered 7 $2,800 $2,600 $2,400 $2,200 8 $2,720 $3,200 $3,000 $2,800 9 $2,640 $3,040 $3,600 $3,400 10 $2,480 $2,880 $3,440 $4,000 Number of Text Book to Order 280 320 360 400 Number of Introductory Economics Classes Offered 7 $2,800 $2,600 $2,400 $2,200 8 $2,720 $3,200 $3,000 $2,800 9 $2,640 $3,040 $3,600 $3,400 10 $2,480 $2,880 $3,440 $4,000

Answer rating: 100% (QA)

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