12. A superstore manager is to decide whether to purchase a lot of shoes offered by a factory seller. Let p be the propo

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12 A Superstore Manager Is To Decide Whether To Purchase A Lot Of Shoes Offered By A Factory Seller Let P Be The Propo 1 (46.07 KiB) Viewed 73 times

12. A superstore manager is to decide whether to purchase a lot of shoes offered by a factory seller. Let p be the proportion of the shoes considered to be unacceptable because of the quality. Assume that the following information is given Event Opportunity loss of accepting the lot р Prior prob. A B C D 0.05 0.10 0.15 0.20 0.40 0.20 0.20 0.20 $O 250 500 750 In a sample of 20 pairs of shoes, 2 are found to be unacceptable. Compute the expected opportunity loss of the action 'accept the lot' if (a) Action is taken before 'sampling'; (b) Action is taken after 'sampling'.