A small parts manufacturer has just engineered a new product for the automotive industry. In order to produce the part the company can expand existing facilities, acquire a competitor, or subcontract production. The company believes the product will either experience high market demand or low market demand. The following payoff table describes the company's decision situation: The best decision for the manufacturer using the minimax regret decision criterion is to
A) expand facilities.
B) acquire competitor.
C) subcontract production.
D) select high demand.

Question

A small parts manufacturer has just engineered a new product for the automotive industry. In order to produce the part the company can expand existing facilities, acquire a competitor, or subcontract production. The company believes the product will either experience high market demand or low market demand. The following payoff table describes the company's decision situation:  The best decision for the manufacturer using the minimax regret decision criterion is to
A) expand facilities. 
B) acquire competitor. 
C) subcontract production. 
D) select high demand.

Quizplus · Accepted Answer

The Answer of A small parts manufacturer has just engineered a new product for the automotive industry. In order to produce the part the company can expand existing facilities, acquire a competitor, or subcontract production. The company believes the product will either experience high market demand or low market demand. The following payoff table describes the company's decision situation:  The best decision for the manufacturer using the minimax regret decision criterion is to
A) expand facilities. 
B) acquire competitor. 
C) subcontract production. 
D) select high demand.

A Small Parts Manufacturer Has Just Engineered a New Product