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Debbie is a buyer for a retail chain and needs to decide what order quantity to place for women's ...

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Debbie is a buyer for a retail chain and needs to decide what order quantity to place for women's ...

Debbie is a buyer for a retail chain and needs to decide what order quantity to place for women's coats for the upcoming winter season. Below is a payoff table, in thousands of dollars, for various order quantities (1 = lowest, 4 = highest) and demand levels for the winter coats. Also shown in the table are the probabilities that Debbie has estimated for each demand level.

If Debbie uses decision making under risk, the order size she will choose is ____________.

▸ Order Quantity 1

▸ Order Quantity 2

▸ Order Quantity 3

▸ Order Quantity 4

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Business Statistics

Edition: 2^nd

Author: Donnelly

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