A local deli prepares fresh potato salad for its customers every day. The unsold salad has to
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A local deli prepares fresh potato salad for its customers every day. The unsold salad has to be thrown away. The demand for potato salad can be classified as low (100 lb), medium (200 lb), or high (300 lb). The production runs being considered are 100, 200, and 300 lb. The payoffs for all combinations of production and demand are shown here.
(a) What is the maximin solution of this problem?
(b) What is the expected monetary value of each action if the probabilities of demand being low, medium, and high are .3, .3, and .4, respectively?
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Related Book For
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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