Question
Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager.
Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden, Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and general demographic changes in population. Sydneys marketing research has given him some estimates for the different locations as described in the decision table below. Decision Table State of Nature Alternatives Strong Market Fair Market Poor Market Fort Alden 85,000 54,000 45,000 Central City 69,000 52,000 38,000 Roseville 110,000 74,000 55,000 Step 2 of 2: What would Sydneys anticipated payoff be for the maximin strategy?
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