- This topic has 1 reply, 2 voices, and was last updated 10 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
HI Sir
Sales per week
Sales (units) Probability
10 0.3
20 0.5
30 0.2
Selling price: $20 p.u.
Cost: $10 p.u.
Any unsold units must be sold as scrap for $1 p.u.
The company can contract to purchase 10, 20 or 30 units each weekplease I need to know how you calculated the maximum regret here. I can’t figure it out. thx
Have you watched the lecture? (There is no point in using the course notes without the lectures – I go through the example in the lecture and explain it).
I cannot type out the entire lecture here.
We produce the regret table. Since they are regrets (losses) the worst outcome in each case is the maximum (i.e. biggest) regret.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.