Assignment:
Using the below information complete the mcq:
The national sales manager for Haynes T-shirts supplies all salespersons with the payoff table shown below, giving the potential profit generated when a retailer purchases from 1 to 4 dozen, as well as an opportunity loss table showing the potential lost profit for each purchase act. The probability of demand for each state of nature is also shown.
|
|
Payoff Demand
|
|
Opportunity Loss Demand
|
|
Purchase
|
1
|
2
|
3
|
4
|
|
1
|
2
|
3
|
4
|
|
1
|
120
|
120
|
120
|
120
|
|
0
|
120
|
240
|
360
|
|
2
|
0
|
240
|
240
|
240
|
|
120
|
0
|
120
|
240
|
|
3
|
-120
|
120
|
360
|
360
|
|
240
|
120
|
0
|
120
|
|
4
|
-240
|
0
|
240
|
240
|
|
360
|
240
|
120
|
0
|
|
Probability
|
0.4
|
0.3
|
0.2
|
0.1
|
|
0.4
|
0.3
|
0.2
|
0.1
|
Q1 What is the expected payoff for purchasing 1 dozen T-Shirts?
a. 0
b. 96
c. 12
d. 144
Q2 What is the expected payoff for purchasing 2 dozen T-Shirts?
a. 0
b. 96
c. 12
d. 144
Q3 What is the expected payoff for purchasing 3 dozen T-Shirts?
a. 0
b. 96
c. 12
d. 144
Q4 How many dozen T-Shirts should be purchased to yield the highest expected payoff?
a. 1
b. 2
c. 3
d. 4
Q5 What is the expected opportunity loss for purchasing 1 dozen T-shirts?
a. 96
b. 120
c. 144
d. 240
Q6 What is the expected opportunity loss for purchasing 3 dozen T-shirts?
a. 96
b. 120
c. 144
d. 240
Q7 How many dozen T-shirts should be purchased to minimize the expected opportunity loss?
a. 1
b. 2
c. 3
d. 4
Q8 What is the maximum expected payoff under conditions of certainty?
a. 96
b. 120
c. 144
d. 240
Q9 What is the value of perfect information?
a. 0
b. 96
c. 120
d. 159
Q10 How many dozen T-shirts should be purchased if the maximin strategy is used?
a. 1
b. 2
c. 3
d. 4
Q11 How many dozen T-shirts should be purchased if the maximax strategy is used?
a. 1
b. 2
c. 3
d. 4