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Quantitative Methods: Decision by Optimist, Conservative, and Minimax Regret Methods

Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands.

Order Size Low Medium High
1 lot 12 15 15
2 lots 9 25 35
3 lots 6 35 60

a. What decision should be made by the optimist?
b. What decision should be made by the conservative?
c. What decision should be made using minimax regret?

Solution Summary

The solution provides decision using optimist, conservative, minimax regret methodsin an attached Excel file.