The national sales manager for "I colored this" (ICT) T-shirts provides all salespersons with the following opportunity loss table showing the potential lost profit for each purchase decision or act from one to four dozen T-shirts. The probability of demand for each state of nature is also shown. How many dozen T-shirts should you purchase based on minimizing the expected opportunity loss?
A) 1
B) 2
C) 3
D) 4

Question

The national sales manager for "I colored this" (ICT) T-shirts provides all salespersons with the following opportunity loss table showing the potential lost profit for each purchase decision or act from one to four dozen T-shirts. The probability of demand for each state of nature is also shown.  How many dozen T-shirts should you purchase based on minimizing the expected opportunity loss?
A) 1 
B) 2 
C) 3 
D) 4

Quizplus · Accepted Answer

The Answer of The national sales manager for "I colored this" (ICT) T-shirts provides all salespersons with the following opportunity loss table showing the potential lost profit for each purchase decision or act from one to four dozen T-shirts. The probability of demand for each state of nature is also shown.  How many dozen T-shirts should you purchase based on minimizing the expected opportunity loss?
A) 1 
B) 2 
C) 3 
D) 4

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