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Dalton and Carla run a small bicycle shop called " D n C"Bicycles.They must order bicycles for the coming season. Orders for the bicycle must be placed in quantities of twenty(20).The cost per bicycle is $70 if they order 20,$67 if they order 40,$65 if they order 60 and $64 if they order 80.The bicycles will be sold for $100 each. Any bicycles left over at the end of the season can be sold (for certain)at $42 each. If Dalton and Carla run out of bicycles during the season ,then they will suffer a loss of "goodwill" among their customers. They estimate this goodwill loss to be $8 per customer who was unable to buy a bicycle. Dalton and Clara estimate that the demand for bicycles this season will be 10,30,50,or 70 bicycles. a. Construct a decision table b. Determine the maximax and the maximin decisions c. Construct opportunity loss table and determine the minimax regret decision d. If the probabilities of the demand will be 10,30,50 or 70 bicycles are 0.2,0.4,0.3, and 0.1 respectively, what is you best choice using EMV criterion.
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