Question;Module 2;A local real;estate investor in Orlando is considering three alternative investments: a;motel, a restaurant, or a theater. Profits from the motel or restaurant will be;affected by the availability of gasoline and the number of tourists, profits;from the theater will be relatively stable under any conditions. The following;payoff table shown the profit or loss that could result from each investment.;Gasoline Availability;Investment Shortage Stable Supply Surplus;Motel $-8,000 $15,000 $20,000;Restuarant 2,000 8,000 6,000;Theater 6,000 6,000 5,000;Determine the best investment using the following;decision criteria.;a. Maximax;b. Maximin;c. Minimax regret;d. Hurwicz (? =.4);e. Equal likelihoodThe Steak and Chop Butcher Shop purchases steak from a local meatpacking house. The meat is purchased on Monday at $2.00 per pound, and the shop sells the steak for $3.00 per pound. Any steak left over at the end of the week is sold to a local zoo for $.50 per pound. The possible demands for steak and the probability of each are shown in the following table:Demand (lb.) Probability20.1021.2022.3023.3024.101.00The shop must decide how much steak to order in a week. Using Excel, construct a payoff table for this decision situation and determine the amount of steak that should be ordered, using expected value.
Paper#60716 | Written in 18-Jul-2015Price : $23