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sir in this problem the uncertainity is demand so considering the way you explained in your lectures don’t we have to find the max and min from our demand no.why it considers supply
sorry to bother you but i have a conceptual problem here.it would be great if you could explain it to me.thanks in advance
demand 450 620 775 960
suppl 450 1170 1170 1170 1170
620 980 1612 1612 1612
775 810 1395 2015 2015
960 740 1290 1785 2496maximin 1170
980
810
740
ans..960
I know i am doing it wrong but this is the way i understood what you did in your lecture.please explain
810In this question it is the level of demand that is uncertain and it is the level of supply that we are having to decide.
So for each level of supply we identify the minimum return.
You have listed the minimum returns for each level of supply correctly.
For maximin choose the highest of these which is 1,170. This occurs when the supply is 450.
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