A milk salesman estimates the probability of the demand for a litre of milk is as follows: Demand 11 12 13 14 15 Probability 0.10 0.15 0.30 0.25 0.20…
2079 · Solved Question with Answer
A milk salesman estimates the probability of the demand for a litre of milk is as follows:
| Demand | 11 | 12 | 13 | 14 | 15 |
|---|---|---|---|---|---|
| Probability | 0.10 | 0.15 | 0.30 | 0.25 | 0.20 |
He purchase a litre of milk @ of Rs. 60 and sells it @ of Rs. 70. Prepare payoff table and find optimum stock by using EMV criteria assuming the unsold milk has no scrap value.