1. Sara is planning to start a new designer cloth shop. Her problem is to decide how large her shop should be. The annual returns will depend on both the size of her shop and a number of marketing...



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1. Sara is planning to start a new designer cloth shop. Her problem is to decide how large her shop<br>should be. The annual returns will depend on both the size of her shop and a number of marketing<br>factors related to the current market conditions and demand for designer wear. After a careful<br>analysis, Sara came up with the following table:<br>Size of Shop<br>Good Market (R.o.)<br>Fair Market (R.o.)<br>Poor market (R.o.)<br>Small Scale<br>1200 + a<br>2000 + b<br>400 +c<br>Medium Scale<br>1500 + d<br>3000 + e<br>1800 +f<br>Large Scale<br>2200 + a<br>3000 + b<br>2500 + c<br>Very Large Scale<br>3000 + d<br>5000 + e<br>2000 + f<br>What will be her decision based on<br>i. Pessimistic approach<br>Note: a = 9 b = 9 c = 0 d = 9 e = 1 and f = 9<br>

Extracted text: 1. Sara is planning to start a new designer cloth shop. Her problem is to decide how large her shop should be. The annual returns will depend on both the size of her shop and a number of marketing factors related to the current market conditions and demand for designer wear. After a careful analysis, Sara came up with the following table: Size of Shop Good Market (R.o.) Fair Market (R.o.) Poor market (R.o.) Small Scale 1200 + a 2000 + b 400 +c Medium Scale 1500 + d 3000 + e 1800 +f Large Scale 2200 + a 3000 + b 2500 + c Very Large Scale 3000 + d 5000 + e 2000 + f What will be her decision based on i. Pessimistic approach Note: a = 9 b = 9 c = 0 d = 9 e = 1 and f = 9

Jun 11, 2022
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