A company that is introducing a new product has to choose between four marketing plans, A through D. The marketing plans are forecasted to have varying payoffs, depending on the level of advertising. The probability of high demand is 0.6 and of low demand 0.4. Use the following decision rules to select the marketing plan: maximin, maximax, minimax regret, Laplace, and expected value.

Question

A company that is introducing a new product has to choose between four marketing plans, A through D. The marketing plans are forecasted to have varying payoffs, depending on the level of advertising. The probability of high demand is 0.6 and of low demand 0.4. Use the following decision rules to select the marketing plan: maximin, maximax, minimax regret, Laplace, and expected value.
A company that is introducing a new product has to choose between four marketing plans, A through D. The marketing plans are forecasted to have varying payoffs, depending on the level of advertising. The probability of high demand is 0.6 and of low demand 0.4. Use the following decision rules to select the marketing plan: maximin, maximax, minimax regret, Laplace, and expected value.

Quizplus · Accepted Answer

The Answer of A company that is introducing a new product has to choose between four marketing plans, A through D. The marketing plans are forecasted to have varying payoffs, depending on the level of advertising. The probability of high demand is 0.6 and of low demand 0.4. Use the following decision rules to select the marketing plan: maximin, maximax, minimax regret, Laplace, and expected value.

A Company That Is Introducing a New Product Has to Choose