Use the payoff matrix to determine the best strategy.
-A clothing manufacturer must decide which of two clothing lines to emphasize for the spring season, her usual line or a budget line. Her success with each line depends on the state of the economy next year. She estimates the payoff matrix to be as follows:

Economists believe that there is a $10 \%$ chance of a strong economy next year, a $60 \%$ chance of a weak economy, and a 30\% chance of an in-between economy. What is the manufacturer's best strategy?
A) Emphasize the budget line
B) Wait and see
C) Emphasize the usual line

Question

Use the payoff matrix to determine the best strategy.
-A clothing manufacturer must decide which of two clothing lines to emphasize for the spring season, her usual line or a budget line. Her success with each line depends on the state of the economy next year. She estimates the payoff matrix to be as follows:

Economists believe that there is a $10 \%$ chance of a strong economy next year, a $60 \%$ chance of a weak economy, and a 30\% chance of an in-between economy. What is the manufacturer's best strategy?
A) Emphasize the budget line 
B) Wait and see 
C) Emphasize the usual line

Quizplus · Accepted Answer

The Answer of Use the payoff matrix to determine the best strategy.
-A clothing manufacturer must decide which of two clothing lines to emphasize for the spring season, her usual line or a budget line. Her success with each line depends on the state of the economy next year. She estimates the payoff matrix to be as follows:

Economists believe that there is a $10 \%$ chance of a strong economy next year, a $60 \%$ chance of a weak economy, and a 30\% chance of an in-between economy. What is the manufacturer's best strategy?
A) Emphasize the budget line 
B) Wait and see 
C) Emphasize the usual line

Use the Payoff Matrix to Determine the Best Strategy 10%10 \%10%

Use the Payoff Matrix to Determine the Best Strategy $10 \%$