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Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands.
Order Size, Demand Low, Medium, High
1 lot ,12,15, 15
2 lots, 9 ,25, 35
3 lots ,6, 35, 60
a. What decision should be made by the optimist?
b. What decision should be made by the conservative?
c. What decision should be made using minimax regret?
d. Assuming probabilities as follows, calculate the EVPI.
P(Low)=0.20, P(Med)=0.55, P(High)=0.25
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The focus is on people’s experiences with treatments for the condition you are researching, including decision-making and engagement with treatment, as well as the stigmatizing or disparate influences on people’s life experiences.
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