Data Analysis, Database Management System

Assignment Help:
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.

Related Discussions:- Data Analysis

What are the basic merits of decomposition, The basic merits of decompositi...

The basic merits of decomposition. The Advantages of Decomposition 1.  Separate person can work on each subsystem. 2.  A particular software engineer can specialize in a

Need customer management program, Project Description: This is a Custome...

Project Description: This is a Customer Management project. Customer data is presented in a text file. The program can load this text data into its database columns. The data ma

What is a query tree, What is a query tree?     Ans:  A query tree, as ...

What is a query tree?     Ans:  A query tree, as well known as operator graph, is a tree data structure that corresponds to a relational algebra expression. It denotes the inpu

Create a database, The database will enable college administrators the abil...

The database will enable college administrators the ability to track students initial major. This will help college officials decide how best to prepare students for their goals an

What are the two statements regarding transaction, What are the two stateme...

What are the two statements regarding transaction? The two statements regarding transaction of the form are:- A)     Begin transaction B)      End transaction

Which is another name for weak entity, Which is another name for weak entit...

Which is another name for weak entity? Child is another name of weak entity.

How many types of views are there, How many types of Views are there? ...

How many types of Views are there? There are Four types of views:- Database View Help View Projection View Maintenance View

Data fragmentation-use of partial data by applications, Use of partial data...

Use of partial data by applications : In common, applications work with views rather than whole relations. Thus, it may be more appropriate to work with subsets of relations rather

What is the meaning of recovery, What is the meaning of Recovery? In d...

What is the meaning of Recovery? In deferred update methods, if a transaction fails before arriving its commit point, it will not have altered the database in any way, so UNDO

What are the states of transaction, What are the states of transaction? ...

What are the states of transaction? The states of transaction are:- a) Active b) Partially committed c) Failed d) Aborted e )Committed   f) Terminated

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd