The manager of Paul's fruit and vegetable store is considering the purchase of a new seedless watermelon from a wholesale distributor. Since this seedless watermelon costs $4, will sell for $7, and is highly perishable, he only expects to sell between six and nine of them. Based on a maximin decision strategy, what alternative is selected?
A) Order 6
B) Order 7
C) Order 8
D) Order 9

Question

Quizplus · Accepted Answer

The maximin decision strategy involves choosing the option with the best worst-case scenario. If the manager orders 6 watermelons, the worst-case scenario is selling all 6, resulting in a profit of $18. This is the highest worst-case profit compared to ordering more watermelons and potentially not selling them all.

The Manager of Paul's Fruit and Vegetable Store Is Considering