(Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the answer using the criterion of minimax regret? PROFIT (S) Average Crowd Alternatives Large Inventory Small Inventory Probability OA) -$2,000 OB) $130,000 O C) $0 O D) $20,000 O E) $153.400 Large Crowd $220,000 $90,000 .20 $50,000 $70,000 .50 Small Crowd -$2,000 -$5,000 .30
(Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the answer using the criterion of minimax regret? PROFIT (S) Average Crowd Alternatives Large Inventory Small Inventory Probability OA) -$2,000 OB) $130,000 O C) $0 O D) $20,000 O E) $153.400 Large Crowd $220,000 $90,000 .20 $50,000 $70,000 .50 Small Crowd -$2,000 -$5,000 .30
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter7: Nonlinear Optimization Models
Section: Chapter Questions
Problem 56P
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![QUESTION 12
(Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small
inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking
decision) and states of nature (size of crowd). What is the answer using the criterion of minimax regret?
Alternatives
Large Inventory
Small Inventory
Probability
O A) -$2,000
O B) $130,000
O C) $0
O D) $20,000
O E) $153,400
Large
Crowd
$220,000
$90,000
.20
PROFIT ($)
Average
Crowd
$50,000
$70,000
.50
Small
Crowd
-$2,000
-$5,000
.30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa5ff83c-bb91-4cdb-982b-77d31ade486d%2Fbf2caef6-002a-46d7-b6dc-3e9b72162a4b%2Frwp8rhm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 12
(Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small
inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking
decision) and states of nature (size of crowd). What is the answer using the criterion of minimax regret?
Alternatives
Large Inventory
Small Inventory
Probability
O A) -$2,000
O B) $130,000
O C) $0
O D) $20,000
O E) $153,400
Large
Crowd
$220,000
$90,000
.20
PROFIT ($)
Average
Crowd
$50,000
$70,000
.50
Small
Crowd
-$2,000
-$5,000
.30
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