Question: please clearly show all steps and excel functions and calculations to complete this problem in excel Mountain Ski Sports, a chain of ski-equipment shops in

please clearly show all steps and excel functions and calculations to complete this problem in excel please clearly show all steps and excel functions
please clearly show all steps and excel functions
Mountain Ski Sports, a chain of ski-equipment shops in Colorado, purchases skis from a manufacturer each summer for the coming winter season. The most popular intermediate model costs $150 and sells for $275. Any skis left over at the end of the winter are sold at the store's spring sale (for $100). Sales over the years are quite stable. Gathering data from all its stores, Mountain Ski Sports developed the following probability distribution for demand: Demand Probability 150 0.05 175 0.20 200 0.35 225 0.30 0.10 250 The manufacturer will take orders only for multiples of 20, so Mountain Ski is considering the following order sizes: 160, 180, 200, 220, and 240. 0. You must clearly mark every row, column, and cell in your work. 1. Contruct a payoff table. Make sure rows represent alternatives (order quantity, 160, 180, ..., 240) and columns outcome of random event (demand 150, 175, ..., 250). It would be easier to calculate the payoff using a Newsvendor model and a two-way data table. Calculate the expected payoff of each purchase quantity (better using SUMPRODUCT() and placing the result at the end of each row) and highlight the best one. 2. Calculate the expected payoff under perfect information by: find the best payoff under each demand (better place them at the bottom of each column), multiply with corresponding probability and add up (SUMPRODUCT() again). The difference between the expected payoff under perfect information and the best expected payoff from step 1 is the expected value of perfect information. Highlight it. 3. Calculate the expected demand (each demand times corresponding prob. and then add up). What would be the payoff of ordering this quantity? Highlight both expected demand and payoff. Will you do better than ordering the quantity from step 1

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