Refer to Problem 33. Use linear programming and the simplex method to find the expected value of the game for store R. If store R plays its optimal strategy and store C always places a newspaper ad, what is the expected value of the game for store C?

Data from Problem 33

A small town has two competing grocery stores, store R and store C. Every week each store decides to advertise its specials using either a newspaper ad or a mailing. The following payoff matrix indicates the percentage of market gain or loss for each choice of action by store R and store C.

Use linear programming and a geometric approach to find optimal strategies for store R and store C.

Transcribed Image Text:

R Paper Mail C Paper Mail 1 -6 -5