Find the best alternative given the cost outcomes below. The probability of rain

Question

Find the best alternative given the cost outcomes below. The probability of rain is 0.3, clouds is 0.2, and sun is 0.5. In Exercise 1, base your decision instead on the worst possible outcome for each alternative. Now consider a decision based on the best possible out come. When might both of these give you the same decision? Laptops R Me keeps detailed data on their laptop sales. In the last 300 days the number of laptops sold was as shown in the table below. (a) Find the frequency distribution of sales. (b) Find the average number of laptops sold daily. (c) Find the yearly profit assuming the store is only open on weekdays 50 weeks a year and the aver-age profit per laptop is exist65.

Explanation / Answer

(1) best alternave is c as it has lowest cost,( lower is known as better in terms of cost)

(2) for (a) it is rainy, for (b) it is sunny and for (c)&(d) it is cloudy

(3) (a) frequency distribution is already given and (b)

average sell=sum(f*x)/sum(f)=735/300= 2.45

(3)(c) there are 5 days are working in a week (saturday and sunday closed)

in 50 weeks there will be 250 working days.

so number sell=250*2.45=612.5

yearly profit=250*2.45*65=39812.5

Rainy(0.3) Cloudy(0.2) Sun(0.5) average cost a 6 3 4 6*0.3+3*0.2+4*0.5= 4.4 b 2 4 5 2*0.3+4*0.2+5*0.5= 3.9 c 5 4 3 5*0.3+4*0.2+3*0.5= 3.8 d 5 4 3 5*0.3+4*0.2+4*0.5= 4.3

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