The National Sales Manager for "I Colored This" (ICT) T-Shirts

question 103

Multiple Choice

The national sales manager for "I colored this" (ICT) T-shirts, provides all salespersons with the payoff table shown below, giving the estimated profit when a retailer purchases from 1 to 4 dozen T-shirts. The probability of demand for each state of nature is also shown. How many dozen "I colored this" T-shirts should be purchased to yield the highest expected monetary value?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

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