Question

A firm projected demand of its products A,B, and C under different circumstances. The details are as given below in matrix form
                A |   B  |  C
optimistic 28   10    5

most likely 30 12  1

pessimistic 35 5 2

if matrix (1  2  4) represent profit per unit of goods A,B,C in that order using matrix multiplication find the profit under different circumstances

Answer 1

| 28  10  5 |
| 30  12  1 |    =  M, projected demand for products A, B, and C
| 35   5  2  |

| 1 |
| 2 |  = P profit per unit of A, B, C
| 4 |


| Optimistic Profit     |
| Most likely profit    |  =  M x  P
| Pessimistic profit   |

|  28 * 1 + 10 * 2 + 5 * 4  |
|  30 * 1 + 12 * 2 + 1 * 4 |    = M  x  P  or  M P
|  35 * 1 +  5 * 2 + 2 * 4 |

| 68 |
| 58 |  = M P    equate the corresponding rows
| 53 |