Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100,200,or 400 dozen roses.Given 0.2,0.4,and 0.4 are the probabilities for the sale of 100,200,or 400 dozen roses,respectively,then the expected opportunity loss (EOL)for buying 200 dozen roses is

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The expected opportunity loss (EOL) is calculated by considering the cost of overstocking or understocking. For buying 200 dozen roses, the EOL is calculated as follows:  - If demand is 100 dozen, the loss is (200-100) * ($10 - $5) = $500.  - If demand is 200 dozen, the loss is $0.  - If demand is 400 dozen, the loss is (400-200) * ($20 - $10) = $2000.  The EOL = (0.2 * $500) + (0.4 * $0) + (0.4 * $2000) = $100 + $0 + $800 = $900.

Blossom's Flowers Purchases Roses for Sale for Valentine's Day