9. A furniture store has received enquiries for furniture and equipment renting. Most enquirers are interested in rentin

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9. A furniture store has received enquiries for furniture and equipment renting. Most enquirers are interested in rentin

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9 A Furniture Store Has Received Enquiries For Furniture And Equipment Renting Most Enquirers Are Interested In Rentin 1
9 A Furniture Store Has Received Enquiries For Furniture And Equipment Renting Most Enquirers Are Interested In Rentin 1 (63.14 KiB) Viewed 176 times
9. A furniture store has received enquiries for furniture and equipment renting. Most enquirers are interested in renting a complete set for which there is financial risk. Another firm leased the complete set at K560 for the entire season amounting to K5 a day with a rental fee of K15 bringing a profit of K10. Basing on past experience 41, 42, 43, 44, 45 or 46 complete sets can be leased for the season. Additional information indicates that in 360 days of the total of 6000 days experience, new rental firms rented out 41 complete sets. On 10% of the days, they rented 42 complete sets etc.. Number of sets rented Number of days out of the total (6000) 0 40 41 360 42 600 43 840 44 2400 45 1500 46 300 47 0 ii. construct a payoff table the expected daily profit for leasing 43 complete sets for the comparative firm is K426.70;45 sets K431.70; for 46 sets K427.45.Organise these expected daily profits into a table, and complete the table by finding the expected daily profit for leasing 41, 42 and 44 sets. iii. What is the most profitable course of action to take based on the expected daily profit? The expected opportunity loss for leasing 43 complete sets is K11.60; 45 sets K6.60; for 46 sets K10.85. Organise these into an expected opportunity loss table , and complete the table by computing the expected opportunity loss for 41, 42 and 44 v. Based on the expected opportunity loss table, what is the most profitable course of action to take? Does this agree with your decision in iii? vi. Determine the value of perfect information. Explain what it indicates in this problem.
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