Question: The Midtown Market purchases apples from a local grower. The apples are purchased on Monday at 2.00 per lb, and the market sells them for $3.00 per lb. Any apples left over at the end of the week are sold to a local zoo for $0.50 per pound. The possible demands for apples and the probability for each are as follows:

1. The market must decide how many apples to order in a week. Construct a payoff table for this decision situation and determine the amount of apples that should be ordered using expected value.
2. Assuming the probabilities cannot be assigned to the demand values, what would the best decision be using the maximax and maximin criteria?

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Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document