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Transcribed image text: The expected gain for Corupany l is a 52% increase in market share, and the expected loss for Company II is also a 5.2% market share. Thus, the roixed strategies for each compary have resulted in an equilibrium point such that a 52% expected gain for Compary I results in a simultaneous 5.2% expected loss for Company II. It is also interesting to note that each company has improved its position over the one arrived at using the maximin and minimax strategies. Recall from Table E-4 that the payoff for Company I was only a 4% increase in market share, whereas the mixed strategy yields an expected gain of 5.2%. The ontcome for Company II from the minimax strategy was a 7% loss; however, the mixed strategies show a loss of only 5.2%. Thus, each company puts itself in a better situation by using the mixed strategy approach. This approach assumes that the game is repetitive and will be played over a period of time so that a strategy cm be employed a certain percentage of that time. For our example, it can be logically assmed that the marketing of the new camera by Company I will require a lengthy time frame. Thros, ach company could exploy its mixed strategy- The QM for Windows solation of this mined strategy game for the two camera companies is shown in Exhribit E-2. Problem \#1, page E-10. (12 pts) (1) What is the QM's result for the best strategy of Row player? What does the result tell us? (2) What is the QM's result for the best strategy of Column player? What does the result tell us? (3) What is the value of the game as given in the QM result? (4) Is the best strategy a pure strategy or a mixed strategy? a. A pure strategy b. A mixed strategy Problem \#2. page E10 (12 pts) (1) What is the QM's result for the best strategy of Row player? What does the result tell us? (2) What is the QM's result for the best strategy of Column player? What does the result tell us? (3) What is the value of the game as given in the QM result? (4) Is the best strategy a pure strategy or a mixed strategy? a. A pure strategy b. A mixed strategy 1. The Army is conducting war games in Emope. One simulated enconnter is between the Blue and Red Divisions. The Blue Division is on the offensive, the Red Division holds a defensive position. The results of the war game are measured in trrms of troop losses. The following payoff table shows Red Division troop losses for each battle strategy available to each division. Determine the optimal stratrgy for both divisions and the number of troop losses the Red Division can expect to suffec 2. The Baseball Players Asociation has voted to go on strike if a settlement is not reached with the owners within the next month. The players' representative, Melvin Mulchead, has two strategies (containiog different free ageat rules, pension formulas, etc.); the owners' representative, Roy Stonewall, has three counterproposals. The financil gains in millions of dollars from each playex strategy given each owner stratrgy are shown in the following payoff table a. Determine the initial strategy for the players and for the owners. b. Is this a pure or a mixnd strategy game? Expluin