Data Analysis, Database Management System

A buyer for a large department store chain must place orders with an athletic shoe manufacturer six months prior to the time the shoes will be sold in the department stores. In particular, the buyer must decide on November 1 how many pairs of the manufacturer’s newest model of tennis shoes to order for sale during the coming summer season. Assume that each pair of this new brand of tennis shoes costs the department store chain $45 per pair. Furthermore, assume that each pair of these shoes can then be sold to the chain’s customers for $70 per pair. Any pairs of these shoes remaining unsold at the end of the summer season will be sold in a closeout sale next fall for $35 each. The probability distribution of consumer demand for these tennis shoes during the coming summer season has been assessed by market research specialists and is provided
Consumer Demand Probability
1 0.05
2 0.15
3 0.25
4 0.30
5 0.15
6 0.10
. Finally, assume that the department store chain must purchase these tennis shoes from the manufacturer in lots of 100 pairs. a. Create a payoff table that specifies the contribution to profit (in dollars) from the sale of the tennis shoes by this department store chain for each possible purchase decision and each outcome with respect to consumer demand. Build the payoff matrix model in each case. In displayed comment boxes or textboxes, show one or two typical formulae used to compute the payoffs. To enable the interpretation of formulae, your model needs to display row and column headings. As we have discussed, this is easy using the Snipping tool. For problem 42 only, apply the following decision criteria: maximin (pessimist’s criterion), minimax regret (doesn’t use probabilities), EMV and EOL. Write a sentence stating the optimal solution for each of the 4 criteria. The statement should contain the recommended strategy and the value of the payoff. Hint for 42: The optimal EMV solution is to order 700 pairs.
Posted Date: 2/8/2013 12:07:12 AM | Location : United States







Related Discussions:- Data Analysis, Assignment Help, Ask Question on Data Analysis, Get Answer, Expert's Help, Data Analysis Discussions

Write discussion on Data Analysis
Your posts are moderated
Related Questions
Partial Key : It is a group of attributes that can uniquely identify small entities and that are related to same base entity. It is sometime named as Discriminator.  Altern

Illustrate the statement 'Projection operation distributes over the union operation'. Give an example.    Ans: Π L (E 1 ∪ E 2 ) = (Π L (E 1 )) ∪ (Π L (E 2 ))   This says th

There are many simple and complex approaches to implement. These reports are based on some views or certain query. The following number of reports can be built. 1. The averag

Determine the Three Views of Data We know that the similar thing, if viewed from dissimilar angles produces difference sights. Similarly, the database that we have formed alrea

Discuss The difference between drop table R and delete from R.  DROP TABLE command deletes all the records with the table definition. This command will automatically committed

What is DML Query Langauge? Data Manipulation Language (DML) - A data manipulation language is a language in which enables users to access or manipulate data as organized throu

Analyzing Association Traversal Association Traversal shall be understood properly for the association design explanation.  Analyzing association traversal means analyzing tra

Consider the E/R schema with weak entity sets shown below. Come up with the SQL CREATE TABLE statements (with appropriate primary key, unique and foreign key constraints). Include

Durability : This property necessitates that once a transaction has committed, the changes made by it be never lost because of subsequent failure. Thus, a transaction is also a bas

Explain the benefit of OOM. Main benefits of object oriented modeling are development of system become fast, quality of the system get improve. It gives freedom of use of alrea