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Decision analysis MCQs based on given data:Haynes T-shirts

Need help on some questions and answers. Please explain your answers if possible.

Reference: 20-1
The national sales manager for Haynes T-shirts supplies all salespersons with the payoff table shown below, giving the potential profit generated when a retailer purchases from 1 to 4 dozen, as well as an opportunity loss table showing the potential lost profit for each purchase act. The probability of demand for each state of nature is also shown.
Payoff Demand Opportunity Loss Demand
Purchase 1 2 3 4 1 2 3 4
1 120 120 120 120 0 120 240 360
2 0 240 240 240 120 0 120 240
3 -120 120 360 360 240 120 0 120
4 -240 0 240 240 360 240 120 0
Probability 0.4 0.3 0.2 0.1 0.4 0.3 0.2 0.1

What is the expected payoff for purchasing 1 dozen T-Shirts? (Refer to: 20-1)
a. 0
b. 96
c. 12
d. 144
What is the expected payoff for purchasing 2 dozen T-Shirts? (Refer to: 20-1)
a. 0
b. 96
c. 12
d. 144
What is the expected payoff for purchasing 3 dozen T-Shirts? (Refer to: 20-1)
a. 0
b. 96
c. 12
d. 144
How many dozen T-Shirts should be purchased to yield the highest expected payoff? (Refer to 20-1)
a. 1
b. 2
c. 3
d. 4
What is the expected opportunity loss for purchasing 1 dozen T-shirts?
a. 96
b. 120
c. 144
d. 240
What is the expected opportunity loss for purchasing 3 dozen T-shirts?
a. 96
b. 120
c. 144
d. 240
How many dozen T-shirts should be purchased to minimize the expected opportunity loss? (Refer To: 20-1)
a. 1
b. 2
c. 3
d. 4

What is the maximum expected payoff under conditions of certainty? (Refer To: 20-1)
a. 96
b. 120
c. 144
d. 240
What is the value of perfect information? (Refer To: 20-1)
a. 0
b. 96
c. 120
d. 159
How many dozen T-shirts should be purchased if the maximin strategy is used? (Refer To: 20-1)
a. 1
b. 2
c. 3
d. 4
How many dozen T-shirts should be purchased if the maximax strategy is used? (Refer To: 20-1)
a. 1
b. 2
c. 3
d. 4

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Decision analysis MCQs based on given data:Haynes T-shirts

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