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Question

newspaper boy buys magazines for Rs.13 each and sells them for Rs.18 each.

He cannot return the unsold

magazine. The past record of sales is as follows:

Sales 23 24 25 26 27 28 29 30 Prob. .05 .10 .15 .30 .20 .10 .05 .05

i) Prepare the opportunity loss table

ii) Select the optimal act using expected

opportunity loss criterion.

iii) Find EVPI

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