SPECIAL PURPOSE ALGORITHMS OF LINEAR PROGRAMMING Name: Student No.:. Section: Score: Subject: Room: Date: Exercises 1. Hasmin Dero has to decide whether or not to open a small dress shop near the university belt, a few blocks from her. Her options are to open a small shop, a medium-sized shop, or no shop at all. The market for a dress shop can be good, average or bad. The probabilities are .2 for a good market, .5 for an average, and .3 for a bad market. The no profit loss for the medium-sized or small shops for the various market conditions are given in the table. Building no shops at all yields no loss and no gain. What do you recommend? Good Market Bad Market Average Market (Php) Alternatives (Php) Small shop P85,000 P20,000 -30,000 120,000 Medium-sized shop 45,000 -70,000 0 0 0 No shop Probabilities 20 .50 .30 SPECIAL PURPOSE ALGORITHMS OF LINEAR PROGRAMMING Name: Subject: Student No.: Section: Room: Score: Date: 3. Analyze the decision tree and determine which initial alternatives (build small facility or build large facility) should be chosen in order to maximize expected monetary value. P260 P260 Do Nothing Expand P295 P295 - P450 P295 Small Facility Large Facility Low Demand (0.4) High Demand (0.6) Low Demand (0.4) High Demand (0.6) P365 Overtime Do Nothing Reduce Prices