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Shaq Bryant sells newspapers on Sunday mornings in an area surrounded by three busy churches. Assume that Shaq’s demand can either be for 100, 300, or 500 newspapers, depending on traffic and weather. Shaq has the option to order 100, 300, or 500 newspapers from his supplier. Shaq pays $1.25 for each newspaper he orders and sells each for $2.50.
(a) How many papers should Shaq order if he chooses the maximax criterion?
(b) How many papers should Shaq order if he chooses the maximin criterion?
(c) How many papers should Shaq order if he chooses the equally likely criterion?
(d) How many papers should Shaq order if he chooses the criterion of realism with a = 0.45?
(e) How many papers should Shaq order if he chooses the minimax regret criterion?
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If at the beginning of the year we started with an empty warehouse what is the average annual setup cost for the dinnerware?
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Evaluate Palmer and his decision to create a new venture capital fund?
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