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Problem 1: Pizza King and Noble Greek are two competing restaurants. Each must determine simultaneously whether to undertake small, medium, or large advertising campaigns.
Problem 1: Pizza King and Noble Greek are two competing restaurants. Each must determine simultaneously whether to undertake small, medium, or large advertising campaigns. Pizza King believes that it is equally likely that Noble Greek will undertake a small, a medium, or a large advertising campaign. Given the actions chosen by each restaurant, Pizza King's profits are as shown in Table below. Noble Greek Choices Pizza King 52 53 Choices Small Medium Large Small $6,000 $5,000 $2,000 Medium $5,000 $6,000 $1,000 Large $9,000 $6,000 $0 A. Determine the best decision using maximin criterion. B. Determine the best decision using maximax criterion. C. Determine the best decision using minimax regret criterion. D. Determine the best decision using expected value criterion. E. Develop the decision tree.
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