maths
A Factory manufactures three types of Cars. The fixed and variable costs are given below
Fixed Cost Variable cost/unit
Car 1 400 50
Car 2 300 60
Car 3 500 60
The demand is uncertain. If the demand is poor the factory expected to sell 200 units, if demand is moderate
then it will sell 500 units and if it is high the sales is expected 1000 units. If sales prices of each type of car is
12,000 Omr/unit then
a. Prepare the payoff table.
b. Identify the decision taken under the pessimistic approach.
c. Identify the decision taken under Hurwicz criterion with the optimism (0.7)