Problem #1

The following table represents the payoff matrix with respect to Player A.
Solve it optimally using dominance property.

PLAYER B
1 2 3 4 5
1 4 6 5 10 6
2 7 8 5 9 10
PLAYER A
3 8 9 11 10 9
4 6 4 10 6 4

Problem#2

Goldilocks bakeshop keeps records of a popular brand of cake with daily demand of 0 with probability of 0.01, 15 with
a probability of 0.15, 25 with a probability of 0.20, 35 with a probability of 0.50, 45 with a probability of 0.12 and 50
with a probability of 0.02.

Given the set of random numbers

48, 78, 9, 51, 56, 77, 15, 14, 68, 9

Simulate the following:

a. Demand for next 10 days

b. Total stocks for 10 days if owner made 35 cakes/day
 PLAYER B PLAYER B
1 2 3 4 5 Row Minimum 1 3 Total
1 4 6 5 10 6 4 2 7 5 12
PLAYER A 2 7 8 5 9 10 5 PLAYER A 3 8 11 19
3 8 9 11 10 9 8
4 6 4 10 6 4 4 PLAYER B
1 3 Total
Column Max 8 9 11 10 10 2 7 5 12
PLAYER A 3 8 11 19
PLAYER B
1 2 3 4 5 Total
1 4 6 5 10 6 31 Probabability of Player A = (P1 = 0, P2= 0, P3=1, P4,=0)
PLAYER A 2 7 8 5 9 10 39 Probabability of Player B = (Q1 = 1, Q2= 0, Q3=0, Q4,=0)
3 8 9 11 10 9 47 Value of the game = 8 For the both players. the probability is 1.
4 6 4 10 6 4 30

Column Max 8 9 11 10 10

PLAYER B
1 2 3 4 5 Total
1 4 6 5 10 6 31
PLAYER A 2 7 8 5 9 10 39
3 8 9 11 10 9 47
4 6 4 10 6 4 30

2 5 1 4 5

PLAYER B
1 2 3 4 5 Total
1 4 6 5 10 6 31
PLAYER A 2 7 8 5 9 10 39
3 8 9 11 10 9 47
4 6 4 10 6 4 30

15 17 16 19 19
Goldilocks bakeshop keeps records of a popular brand of cake with daily demand of Given the set of random numbers
0 with probability of 0.01, 48, 78, 9, 51, 56, 77, 15, 14, 68, 9
15 with a probability of 0.15,
25 with a probability of 0.20, Simulate the following:
35 with a probability of 0.50, a. Demand for next 10 days
45 with a probability of 0.12 b. Total stocks for 10 days if owner made 35 cakes/day
50 with a probability of 0.02.

Solution: Simulation Table

Daily Production Probability Cumulative Probability Random Number No.1 Random NumbersDemand for next 10 days Total stocks for 10 days if owner made 35 cakes/day
0 0.01 0.01 0-0 1 48 35 0
15 0.15 0.16 1-15 2 78 35 0
25 0.20 0.36 16-35 3 9 15 20
35 0.50 0.86 36-87 4 51 35 20
45 0.12 0.98 86-97 5 56 35 20
50 0.02 1.00 98-99 6 77 35 20
7 15 15 40
8 14 15 60
9 68 35 60
10 9 15 80

270 320

Therefore, the demand for next 10 days is 270/10 or 27 units per day.
and the average of total stocks for 10 days if owner made 35 cakes/day is 320/10 or 32 total stocks.