for service to the airline: strong and weak. The following table shows the estimated quarterly...
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for service to the airline: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars). (a) What is the decision to be made, what is the chance event, and what is the consequence for this problem? The decision to be made is the type of service to provide V. The chance event is the level of demand for the service V. The consequence is the amount of quarterly profit V. How many decision alternatives are there? How many outcomes are there for the chance event? (b) If nothing is known about the probabilities of the chance outcomes, what is the recommended decision using the optimistic, conservative, and minimax regret approaches? the minimax regret approach is the service. answers in thousands of dollars.) EV(full) $ thousands EV(discount) $x thousands The optimal decision is the discount V service. EV(full) thousands EV(discount) : thousands The optimal decision is the full price v service. best choice
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for service to the airline: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars). (a) What is the decision to be made, what is the chance event, and what is the consequence for this problem? The decision to be made is the type of service to provide V. The chance event is the level of demand for the service V. The consequence is the amount of quarterly profit V. How many decision alternatives are there? How many outcomes are there for the chance event? (b) If nothing is known about the probabilities of the chance outcomes, what is the recommended decision using the optimistic, conservative, and minimax regret approaches? the minimax regret approach is the service. answers in thousands of dollars.) EV(full) $ thousands EV(discount) $x thousands The optimal decision is the discount V service. EV(full) thousands EV(discount) : thousands The optimal decision is the full price v service. best choice 