a) ABC Sdn Bhd is planning to launch a new product, Product 123 in the coming year. The market for this new product is uncertain due to the COVID-19 pandemic. The following table shows the budgeted profit for each of the possible outcomes for this new product: Required: i) If ABC Sdn Bhd is to apply maximin criterion to make the decision, the company will choose RM a) RM120 b) RM135 c) RM150 d) RM165 (1 mark) ii) If ABC Sdn Bhd is to apply maximin criterion to make the decision, the budgeted profit that will be earned is RM (1 mark) iii) If ABC Sdn Bhd is to apply maximax criterion to make the decision, the company will choose RM as the selling price. (1 mark) a) RM120 b) RM135 c) RM150 d) RM165 iv) If ABC Sdn Bhd is to apply maximax criterion to make the decision, the budgeted profit that will be earned is RM (1 mark) v) If ABC Sdn Bhd is to apply regret criterion to make the decision, the regret table will be as follows: (4 marks) vi) If ABCSdnBhd is to apply the regret criterion to make the decision, the company will choose RM _ as the selling price. a) RM120 b) RM135 c) RM150 d) RM165 (1 mark) o) DEF Sdn Bhd is planning to launch and manufacture a new product, Product 456 . The company will need to invest in a new machine in order to manufacture this new product. The management team has provided the estimated net present values for each of the possible outcomes and the associated probabilities for the three (3) proposed machines as follows: Required: i) Without perfect information, DEF Sdn Bhd will invest in Machine (A,B or C) with the expected value of RM_ (1 mark) ii) If perfect information could be purchased from a market research company, the expected value from this perfect information can be calculated as follows: ( 3 marks) a) ABC Sdn Bhd is planning to launch a new product, Product 123 in the coming year. The market for this new product is uncertain due to the COVID-19 pandemic. The following table shows the budgeted profit for each of the possible outcomes for this new product: Required: i) If ABC Sdn Bhd is to apply maximin criterion to make the decision, the company will choose RM a) RM120 b) RM135 c) RM150 d) RM165 (1 mark) ii) If ABC Sdn Bhd is to apply maximin criterion to make the decision, the budgeted profit that will be earned is RM (1 mark) iii) If ABC Sdn Bhd is to apply maximax criterion to make the decision, the company will choose RM as the selling price. (1 mark) a) RM120 b) RM135 c) RM150 d) RM165 iv) If ABC Sdn Bhd is to apply maximax criterion to make the decision, the budgeted profit that will be earned is RM (1 mark) v) If ABC Sdn Bhd is to apply regret criterion to make the decision, the regret table will be as follows: (4 marks) vi) If ABCSdnBhd is to apply the regret criterion to make the decision, the company will choose RM _ as the selling price. a) RM120 b) RM135 c) RM150 d) RM165 (1 mark) o) DEF Sdn Bhd is planning to launch and manufacture a new product, Product 456 . The company will need to invest in a new machine in order to manufacture this new product. The management team has provided the estimated net present values for each of the possible outcomes and the associated probabilities for the three (3) proposed machines as follows: Required: i) Without perfect information, DEF Sdn Bhd will invest in Machine (A,B or C) with the expected value of RM_ (1 mark) ii) If perfect information could be purchased from a market research company, the expected value from this perfect information can be calculated as follows: ( 3 marks)
