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2. Each month, Best Buy can order up to and including five Alienware Area51 laptop units from its supplier, Dell. Each unit costs Best Buy $2000, and Best Buy can sell each of these laptops for $3000. At the end of the month, Best Buy must return any unsold Alienware units to Dell for a credit of $1800. Thus, Best Buy takes a loss of $200 on each unsold unit.

(a) Construct a payoff matrix for this purchasing problem with acts being the number of units ordered each month and the states of nature being the number of units Best Buy is able to sell each month.

(b) Also, construct the opportunity loss table for the payoff matrix in (a).

(c) Determine the optimal act based on the minimax loss strategy.


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