A marketing manager is deciding which of four potential selling prices to charge for a new product. The market for the product is uncertain and reaction from competitors may be strong, medium or weak. The manager has prepared a payoff table showing the forecast profit for each of the possible outcomes.

Required:(i) Identify the selling price that would be chosen if the manager applies the maximin criterion to make the decision.(ii) Identify, using a regret matrix, the selling price that would be chosen if the manager applies the minimax regret criterion to make the decision.

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Selling price Competitor $80 $90 $100 $110 reaction $70000 $80000 $70000 $75000 Strong Medium $50000 $60 000 $70000 $80000 $90000 $100 000 $90 000 $80000 Weak