5. A concessionaire for the local ballpark has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd). Alternatives Large Inventory Average Inventory | $15,000 | S12,000 Small Inventory States of Nature (size of crowd) Average | Small S22,000 S12,000 | - $2,000 $6,000 Large $ 9,000 S 6,000 $5,000 If the probabilities associated with the states of nature are 0.30 for a large crowd, 0.50 for an average crowd, and 0.20 for a small crowd, determine: (a) the opportunity loss table. States of Nature Large Average Small 8,000 Alternatives Large Average Small 7,000 13,000 6,000 1,000 ANSWER
5. A concessionaire for the local ballpark has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd). Alternatives Large Inventory Average Inventory | $15,000 | S12,000 Small Inventory States of Nature (size of crowd) Average | Small S22,000 S12,000 | - $2,000 $6,000 Large $ 9,000 S 6,000 $5,000 If the probabilities associated with the states of nature are 0.30 for a large crowd, 0.50 for an average crowd, and 0.20 for a small crowd, determine: (a) the opportunity loss table. States of Nature Large Average Small 8,000 Alternatives Large Average Small 7,000 13,000 6,000 1,000 ANSWER
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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Transcribed Image Text:5. A concessionaire for the local ballpark has developed a table of conditional values for
the various alternatives (stocking decision) and states of nature (size of crowd).
States of Nature
(size of crowd)
Large
Average Small
$22,000 $12,000 - $2,000
Alternatives
Large Inventory
Average Inventory $15,000 $12,000
Small Inventory
$6,000
$ 9,000 $ 6,000 $5,000
If the probabilities associated with the states of nature are 0.30 for a large crowd, 0.50
for an average crowd, and 0.20 for a small crowd, determine:
(a) the opportunity loss table.
States of Nature
Large Average
Alternatives
Small
8,000
Large
Average
Small
7,000
13,000
6,000
1,000 ANSWER
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