Question
Regret Table Success Moderate Success Failure Probability 0.3 0.3 0.4 Sell Company 97.0 50 0 Form Joint Venture 210 0 45.0 Sell Software on own
Regret Table | Success | Moderate Success | Failure |
Probability | 0.3 | 0.3 | 0.4 |
Sell Company | 97.0 | 50 | 0 |
Form Joint Venture | 210 | 0 | 45.0 |
Sell Software on own | 0 | 199.0 | 100 |
Using the EOL method, which decision alternative will you chose?
a) Sell company
b) Form Joint Venture
c) Sell software on own
Can somebody please help explain me why the correct answer was a)Sell Company instead of c)Sell Software on Own. After solving the Exected Returns of each Decision Alternative, Sell Software came out to be the lowest value which is 63. And since it is saying using the EOL method, we are looking for the smallest value because we are at a loss.
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