Question

1 To satisfy the demand, a shopkeeper has to decide, how many cases of milk

should he keep per week? The distribution of demand is as follows:

Demand

(cases)

15 16 17 18

probability 0.20 0.25 0.40 0.15

The price of each case is Rs. 100 and the selling price is Rs. 120. At the end

of the week, the unsold cases are sold to the local farmer at Rs. 20 per

case(which he adds in the meal of domestic animals). If there is scarcity

then he loses profit of Rs. 20 per case and Rs. 20 due to unsatisfaction of

customer, the shopkeeper believes that this means each scarcity of has a

loss of Rs. 40.

Find best act by EMV criteria, evaluate EVPI and suggest best act by EOL

criteria.​

Answer 1

Answer:

..........................

plz