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1. Andre and Zac run a salad shop called "Healthy from A to Z". They need to make the salads a day before so they have to decide how many salads to make in advance each day before they know the actual demand. Their choice is between 45, 55 and 65 salads. The following table shows their profit or loss/ payoff table. Amount in Php. Determine the optical decision alternative for the four types of criteria. For Criterion of Realism, consider an index of optimism at α=65%.

1. Andre and Zac run a salad shop called "Healthy from A to Z". They need to make the salads a day before so they have to decide how many salads to make in advance each day before they know the actual demand. Their choice is between 45, 55 and 65 salads. The following table shows their profit or loss/ payoff table. Amount in Php. Determine the optical decision alternative for the four types of criteria. For Criterion of Realism, consider an index of optimism at α=65%.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1. Andre and Zac run a salad shop called "Healthy from A to Z". They need to make the salads a day before so they have to decide how many salads to make in advance each day before they know the actual demand. Their choice is between 45, 55 and 65 salads. The following table shows their profit or loss/ payoff table. Amount in Php.

Determine the optical decision alternative for the four types of criteria. For Criterion of Realism, consider an index of optimism at α=65%.

 

 

Decision Alternatives (Daily States of Nature (Daily Demand) Supply) 55 45 65 Salads -1000 Salads Salads 45 Salads 2000 1000 55 Salads 2000 2500 -500 65 Salads 2000 2500 2600
Transcribed Image Text:Decision Alternatives (Daily States of Nature (Daily Demand) Supply) 55 45 65 Salads -1000 Salads Salads 45 Salads 2000 1000 55 Salads 2000 2500 -500 65 Salads 2000 2500 2600
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