A+ Answers

Exercise 22.2    

For the following, set-up the opportunity loss table     

 a_1 a_2  

s_1 55 26  

s_2 43 38  

s_3 29 43  

s_4 15 51  

Exercise 22.11

The owner of a clothing store must decide how many men's shirts to order for the new season. She must order in quantities of 100.

If order Cost per shirt

100 $10.00

200 $9.00

300 or more $8.50

Owner's selling price $12.00

End-of-season price $6.00

Anticipated Demand for this Shirt

100

150

200

250

She would rather understock than overstock.

She must order today for the entire season.

Instructions:

(a) Construct the payoff table to help the owner decide how many shirts to order.

(b) Set up the opportunity loss table.