Question
The owner of Wilson Sporting Goods must decide between commercializing three new tennis rackets. The profit that will result from each alternative will be determined
The owner of Wilson Sporting Goods must decide between commercializing three new tennis rackets. The profit that will result from each alternative will be determined by whether material costs remain stable or increase, as shown in the following payoff table:
| Material Costs | |
Decision | Increase | Stable |
Tennis Racket-Type 1 | 70 | 30 |
Tennis Racket-Type 2 | 105 | 20 |
Tennis Racket-Type 3 | 45 | 40 |
Determine the best decision, using the following decision criteria.
Maximax
Maximin
Minimax Regret
Probabilities of material cost stay stable with 0.7 chance and increase with 0.3 chance.
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