B.F. Retread, a tire manufacturer, wants to select one of three feasible prototype designs for a new tire; A, B, C.

Revenues

Low (0.30) Medium (0.50) High (0.20)

A 120,000 255,000 390,000

B 130,000 295,000 460,000

C 100,000 300,000 480,000

Calculate the highest value you would pay for a highly reliable forecast?

Determine the maximum expected payoff?

What is the best decision using the optimistic approach to decision making?