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Issue:

Business

 

Written by:

Kevin S

 

Date added:

August 26, 2014

 

Level:

University

 

Grade:

A

 

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4 / 1011

 

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Maximax b. Maximin c. Minimax regret d. Equal likelihood Ans: a.Maintain Foreign Competitive Condition Decision Good Poor Max Maximax Expand $ 800,000 $ 500,000 800,000 Maintain 1,300,000 -150,000 1,300,000 1,300,000 Sell 320,000 320,000 320,000 b.Expand Foreign Competitive Condition Decision Good Poor Min Maximin Expand $ 800,000 $ 500,000 500,000 500,000 Maintain 1,300,000 -150,000 -150,000 Sell 320,000 320,000 320,000 c...
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In problem 1, now the research department has came up with a report regarding the future foreign competitive condition. It is estimated that a probability of 0.6 that good condition will happen in the future, and a probability of 0.4 that poor condition will happen. a. Determine the best decision by expected value...
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