Engineers at Hollow Ltd have developed a new product, Product Q. Market research has been extremely positive. The Managing Director, Leah Smith, is keen to maximise the sales potential of the product but if market conditions are not as anticipated, does not want Hollow Ltd left holding quantities of unsold stock.

Prepare a memorandum for Leah outlining how decision techniques for managing attitudes to risk and uncertainty can be used to decide the level of production of Product Q.