Baker's Inn

# Baker's Inn - Baker's Inn Demand Probability Cakes Cost...

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Baker's Inn Demand Probability Expected profit of Cakes Amount Payof Prob Cost 30 \$ 20 0.1 Selling price 50 \$ 25 0.1 30 0.2 Selling price next day 20 \$ 35 0.3 Profit 20 \$ 40 0.25 Loss 10 \$ 45 0.05 1 Pay of Table Demand/Supply 20 25 30 35 40 45 20 25 20 400 350 300 250 200 150 40 35 25 400 500 450 400 350 300 40 50 30 400 500 600 550 500 450 80 100 35 400 500 600 700 650 600 120 150 40 400 500 600 700 800 750 100 125 45 400 500 600 700 800 900 20 25 400 485 1) Expected monetary value EMV 595 2) Expected profit of perfect information EPPI 665 becasue of consult 3) Expected value of perfect information EVPI 70 extra value found b 4) Expected opportunity loss EOL 70 The least loss poss Opportunity loss Expe Demand/Supply 20 25 30 35 40 45 20 25 20 0 50 100 150 200 250 0 5 25 100 0 50 100

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