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Please take a look at the question first then decide whether you want do them or not the couse name is pricing and revenue optimization I need detail explaination must uploade the solution to me before deadline.
IEOR 4601 Homework 3: Due Wednesday February 20 1. Find optimal protection levels for the following data and compute the optimal expected revenues V1(c); V2(c); V3(c) and V4(c) for c 2 f50; 55; 60; 65; 70; 75; 80g assuming Poisson demands. j pj E[Dj ] 1 \$75 8 2 \$100 21 3 \$75 31 4 \$60 20 2. Modify Problem 1 so that p1 = \$125 and compute optimal protection levels and the value function V4(c) for c 2 f50; 55; 60; 65; 70; 75; 80g. 3. (Upper and Lower Bounds) Compute the upper bound V H(c) and V (c; ) and the lower bound V L(c) and the spread V H(c)??V L(c) for Problem 2 for c 2 f50; 55; 60; 65; 70; 75; 80g. 4. (Time Varying Models) Use the discrete time dynamic programs to compute V (T; c) and Vj(T; c); j = 1; 2; 3; 4 for the data of Problem 2 for c 2 f50; 55; 60; 65; 70; 75; 80g for the following arrival rate models: a) Uniform arrival rates e.g tj = j = E[Dj ] for 0 t T = 1. Be sure to rescale time so that T = a is an integer large enough so that P3j=1 E[Dj ]=a 0:01. What accounts for the dierence between V (T; c) and V4(T; c)? What accounts for the dierence between V4(T; c) and V4(c) from Problem 2? b) Low-to-high arrival rates: Dividing the selling horizon [0; T] = [0; 1] into 4 sub- intervals [tj??1; tj ]; j = 1; : : : ; 4 with tj = j=4 and set jt = 4j over t 2 [tj??1; tj ] and jt = 0 otherwise. Again be sure to rescale the system so that T = a is an integer large enough so that maxj maxt jt=a 0:01. What accounts for the dierence between V (T; c) and V4(T; c)? What accounts for the dierence between V4(T; c) and V4(c) from Problem 2?1
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