You're the manager of global opportunities for a U.S. Manufacturer, who is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, Philippines, and Singapore as described next:

Success LevelMalaysiaPhilippinesSingapore

ProbabilityUnitsProbabilityUnitsProbabilityUnits

Big0.31,200,0000.31,000,0000.7700,000

Mediocre0.3600,0000.5320,0000.2400,000

Failure0.400.200.10

The product sells for $10 and has unit costs of $8.

If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000.

1, Suppose all you are interested in is the highest payoff. Which market do you enter? What are you ignoring? What is your profit?

2. Suppose all you are interested in is avoiding losses. Which market do you enter? What are you ignoring? What is your profit?

3. Suppose you are interested in the highest expected profit. Which market do you enter? What are you ignoring? What is your profit?