Fashion Buyers II
A buyer for a department store must decide on which designs the stores will carry before he knows what the demand will be in the coming season.Choosing a poorly demanded design means lots of unsold merchandise and losses that are $200,000 on average.Passing on a highly demanded design means lots of unsold merchandise and missing out on profits that are $300,000 on average.So long as he is more than 40% confident that the design will be successful,carrying the design will minimize expected decision error costs.Why might he opt to carry designs only if he is more than,say,50% confident of success?

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Fashion Buyers II
A buyer for a department store must decide on which designs the stores will carry before he knows what the demand will be in the coming season.Choosing a poorly demanded design means lots of unsold merchandise and losses that are $200,000 on average.Passing on a highly demanded design means lots of unsold merchandise and missing out on profits that are $300,000 on average.So long as he is more than 40% confident that the design will be successful,carrying the design will minimize expected decision error costs.Why might he opt to carry designs only if he is more than,say,50% confident of success?​

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The Answer of Fashion Buyers II
A buyer for a department store must decide on which designs the stores will carry before he knows what the demand will be in the coming season.Choosing a poorly demanded design means lots of unsold merchandise and losses that are $200,000 on average.Passing on a highly demanded design means lots of unsold merchandise and missing out on profits that are $300,000 on average.So long as he is more than 40% confident that the design will be successful,carrying the design will minimize expected decision error costs.Why might he opt to carry designs only if he is more than,say,50% confident of success?​

Fashion Buyers II A Buyer for a Department Store Must Decide on Which