3. Slaggert Systems is considering becoming certified to the ISO 9000 series of quality standards. Becoming certified is expensive, but the company could lose a substantial amount of business if its major customers suddenly demand ISO certification and the company does not have it. At a management retreat, the senior executives of the firm developed the following payoff table, indicating the net present value of profits over the next 5 years.

Customer Response Standards Required Standards Not Required Become certified $600,000 $475,000 Stay uncertified $325,000 $525,000 What decision should the company make using each strategy?

a. average payoff strategy

b. aggressive strategy

c. conservative strategy

d. opportunity-loss strategy