The Super Cola Company must decide whether or not to introduce a new diet soft drink. Management feels that if it does introduce the diet soda it will yield a profit of $1 million if sales are around 100 million, a profit of $200,000 if sales are around 50 million, or it will lose $2 million is sales are only around 1 million bottles. If Super Cola does not market the new diet soda, it will suffer a loss of $400,000.

a.Construct a payoff table for this problem.

b.Construct a regret table for this problem.

c.Should Super Cola introduce the soda if the company is:

1.conservative;

2.optimistic;

3.wants to minimize its maximum disappointment?

Briefly explain each of your three answers for part c

d.An internal marketing research study has found P(100 million in sales) = 1/3;

P(50 million in sales) = ; P(1 million in sales) = 1/6. Should Super Cola introduce the new diet soda?

PLEASE SHOW WORK