Decision Analysis

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Question must be answered in Excel: 

The Steak and chop Butcher Shop purchases steak from a local meatpacking house. The meat is purchased on Monday at $2.00 per pound, and the shop sells the steak for $3.00 per pound. Any steak left over at the end of the week is sold to a local zoo for $.50per pound. The possible demands for steak and the probability of each are shown in the following table:  
   
 Demand (lb.)Probability
 200.1
 210.2
 220.3
 230.3
 240.1
  1
   
The shop must decide how much steak to order in a week. Construct a payoff table for this decision situation and determine the amoun of steak that should be ordered, using epected value.  
    • 9 years ago
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