Computer science
i2u2meWaldo Books needs to decide how many copies of a new hardcover release to purchase
for its shelves. The store has assumed that demand will be 50, 100, 150, or 200 copies
next month and they need to decide whether to order 50, 100, 150 or 200 books for this
period. Each book costs Waldo $20 and can be sold for $30. Waldo can sell any unsold
books back to their supplier for $4.
a) Which option should Waldo choose if they use the maximax criterion?
b) Which option should Waldo choose if they use the maximin criterion?
c) Which option should Waldo choose if they use the equally likely
criterion?
d) Which option should Waldo choose if they use the criterion of realism
with _ = 0.7?
e) Which option should Waldo choose if they use the minimax regret
criterion?
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