Question $1$

$[35]$

Norman L$.$ Flowers holds the exclusive university contract for donut sales. The demand $($based on historical records$)$ appears to follow the following distribution:

$\backslash$table$[[$Daily Demand $($Dozens$),$Probability$],[4,0\mathrm{.}15],[5,0\mathrm{.}25],[6,0\mathrm{.}30],[7,0\mathrm{.}25],[8,0\mathrm{.}05]]$

The cost of producing these is $R1\mathrm{.}20$ per dozen while the selling price is $R4\mathrm{.}20$ per dozen. Based on a marginal analysis of this situation, determine the amount of donuts Norman should produce each day using the questions that follows.

a$)$ Draw up the initial table by hand with costs and profits

$(10)$

b$)$ By using the MaxiMax method. $($on excel$)$

$(4)$

c$)$ By using the MaxiMin method. $($on excel$)$

$(4)$

d$)$ Using the Equally Likely method. $($on excel$)$

$(4)$

e$)$ Using the Criterion of Realism with alpha of $0\mathrm{.}75.($on excel$)$

$(4)$

f$)$ Getting the best EMV. $($on excel$)$

$(5)$

g$)$ Using the Expected Opportunity loss method. $($on excel$)$

$(4)$