A decision-maker is choosing between three alternative marketing strategies A, B and C. The outcome of these strategies depends on whether the market condition will be weak, medium or strong. The possible outcomes of the respective strategies in the different possible market conditions, expressed in thousands of profit are as follows:

	Strategy
Market	A	B	C	Probability of market condition
Weak	20.00	80.00	10.00	0.20
Medium	40.00	70.00	100.00	0.50
Strong	50.00	-10.00	40.00	0.30

Required:

1. What strategy should be adopted if the decision-maker acts on expected value?

(4 marks)

2. What strategy should be adopted if the decision-maker acts on standard deviation?

(10 marks)

3. What strategy should be adopted if the decision-maker acts on the maximax rule?

(2 marks)

4. What strategy should be adopted if the decision-maker acts on the minimax rule?

(2 marks)

5. What strategy should be adopted if the decision-maker acts on the minimax regret rule?

(7 marks)

A decision-maker is choosing between three alternative marketing strategies A, B and C. The outcome of these strategies depends on whether the market condition will be weak, medium or strong. The possible outcomes of the respective strategies in the different possible market conditions, expressed in thousands of profit are as follows:

	Strategy
Market	A	B	C	Probability of market condition
Weak	20.00	80.00	10.00	0.20
Medium	40.00	70.00	100.00	0.50
Strong	50.00	-10.00	40.00	0.30

Required:

1. What strategy should be adopted if the decision-maker acts on expected value?

(4 marks)

2. What strategy should be adopted if the decision-maker acts on standard deviation?

(10 marks)

3. What strategy should be adopted if the decision-maker acts on the maximax rule?

(2 marks)

4. What strategy should be adopted if the decision-maker acts on the minimax rule?

(2 marks)

5. What strategy should be adopted if the decision-maker acts on the minimax regret rule?

(7 marks)