Discuss the below:
Q. The manager of a toy store has to decide how many toys to stock for the Christmas season. Each toy cost the store $5 and is sold for $10. The manager is certain that total sales of a particular toy will always be either 1,000 units, 2,000 units, 3000, 4000, or 6,000 units. The manager has to decide whether to order 2,000, 4,000 or 6,000 toys. (Toys can only be ordered in lots (boxes) of 2,000 toys.)
a. Form a payoff table for the above problem assuming that unsold toys are given to a charitable organization. (You must clearly identify the decision variables and states of nature.)
b. Form a regret table for this problem
c. Form a payoff table for the above assuming that unsold toys are sold at a later time (guaranteed) for $2.00 each.