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DECISION ANALYSIS TABLE

A concert promoter must decide how many T-Shirts to stock for the upcoming concert. Each T-Shirt costs $7 to order and will sell for $15. Assume any leftover T’s can be sold (salvaged) for $2 each. The T-Shirts can only be ordered in lots of 200. The promoter predicts that demand for the T-Shirts will likely be low (around 500), will possibly be high (around 750), and that there is a slight chance that demand will be very high (around 1000).decision alternatives are to order 400, 600, 800, 1000 T-Shirts.
a) Probabilites?
b) Use the probabilities estimated in part a) to determine the optimal number of T-Shirts to order

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