A person has the choice of running a hot snack stall or an ice cream and cold drink shop at a certain holiday resort during the coming summer season. If the weather during the season is cold and rainy he can expect to make a profit of $15,000 and if it is warm he can expect to make a profit of only $3,000 by running a hot snack stall. On the other hand, if his choice is to run an ice cream and cold drink shop he can expect to make a profit of $18,000 if weather is warm and only $ 3,000 if the weather is cool and rainy. The meteorological authorities predict that there is 40% chance of the weather being warm during the coming season. You are to advise him as to the choice between the two types of stalls. Base clearly your argument on the expectation of the results of the two courses of action and show the result in a tabular form.

A person has the choice of running a hot snack stall or an ice cream and cold drink shop at a certain holiday resort during the coming summer season. If the weather during the season is cold and rainy he can expect to make a profit of $15,000 and if it is warm he can expect to make a profit of only $3,000 by running a hot snack stall. On the other hand, if his choice is to run an ice cream and cold drink shop he can expect to make a profit of $18,000 if weather is warm and only $ 3,000 if the weather is cool and rainy. The meteorological authorities predict that there is 40% chance of the weather being warm during the coming season. You are to advise him as to the choice between the two types of stalls. Base clearly your argument on the expectation of the results of the two courses of action and show the result in a tabular form.

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter6: Linear Systems

Section6.8: Linear Programming

Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...

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