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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) Alternatives Large Inventory Average Small Large $22,000 $12,000 - $2,000 Average Inventory | $15,000 $12,000 $6,000 $ 9,000 $ 6,000 Small Inventory $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. (b) minimum expected opportunity loss (EOL).

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) Alternatives Large Inventory Average Small Large $22,000 $12,000 - $2,000 Average Inventory | $15,000 $12,000 $6,000 $ 9,000 $ 6,000 Small Inventory $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. (b) minimum expected opportunity loss (EOL).

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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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 $12,000 Small Inventory States of Nature (size of crowd) Average Small $22,000 $12,000 - $2,000 $6,000 $5,000 Large $ 9,000 S 6,000 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. (b) minimum expected opportunity loss (EOL).
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). Alternatives Large Inventory Average Inventory | $15,000 $12,000 Small Inventory States of Nature (size of crowd) Average Small $22,000 $12,000 - $2,000 $6,000 $5,000 Large $ 9,000 S 6,000 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. (b) minimum expected opportunity loss (EOL).
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