Posted: September 30th, 2016

which option should waldo choose if it uses the MAXIMAX criterion?

waldo books needs to decide how many copies of a new hardcover release to purchase for its shelves. the store has assumed that the demand will 50, 100, 150 or 200 copies next month, and it needs decide whether to order 50, 100, 150 or 200 books for this period. Each books costs waldo and can be sold for $30. Waldo can sell any unsold books back to the supplier for $4. a) which option should waldo choose if it uses the MAXIMAX criterion? b)what option should Waldo choose if it uses the MAXIMIN criterion? c)Which option should should Waldo choose if it uses the equally likely criterion? D) Which option should Waldo choose if it uses criterion of realism with a= 0.7? e)which option should Waldo choose if it uses the minimax regret criterion?