TABLE 17-1
the Following Payoff Table Shows Profits Associated with a Set

question 52

Multiple Choice

TABLE 17-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature.
$\begin{array}{llcc} \text {States } &\text { A1 }&\text { A2 }&\text {A3 }\\\hline1&12&-2&8\\2&4&10&5\end{array}$


$\text {where:}$$\quad$$\quad$ $\text {S1 is state of nature 1 }$$\quad$$\text {A1 is action alternative 1}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\text {S2 is state of nature 2}$$\quad$$\text { A2is action alternative 2}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {A3 is action alternative3 }$
-Referring to Table 17-1, if the probability of S1 is 0.2 and S2 is 0.8, what is the expected opportunity loss (EOL) for A1?

• A) 5.6
• B) 4.8
• C) 1.2
• D) 0

Analyze demand constraints and calculate production requirements.

Formulate and solve linear programming models using Solver in Excel for optimization problems.

Apply binary variable utilization in decision-making for optimal solutions.

Calculate optimal shipping quantities to minimize transportation costs.

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Definitions:

Routine Request

A routine request is a standard or regular appeal for information, services, or action, often made in a professional or formal context.

Relevant Deadlines

These are the important dates by which specific tasks, submissions, or actions are required to be completed, pertinent to the context or project at hand.

Sincere Apology

An expression of remorse that is genuine and communicates true regret for a mistake or wrongdoing.

Routine Request

A standard or normal inquiry or appeal made in a professional or formal context.