Bright Ltd is currently suffering from a depression in the market for its products and needs...

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Bright Ltd is currently suffering from a depression in the market for its products and needs to decide which of three products it should continue produce, so that it can maximise its profits. They have recently employed the services of Bianca Ltd who have researched Bright Ltd and their products and have produced the following information: Bianca Ltd. have provided information for three levels of demand, low, medium and high and the probabilities for each level of demand as 10%, 60% and 30% respectively. The net incomes for each product are: Product A: 50,000, 120,000, 170,000; Product B: 110,000, 185,000, 270,000; Product C: 135,000, 290,000, 160,000. Required: a. Construct the payoff table for the three products. (2 marks) b. Produce, where needed, information which will allow you to state which product you would recommend that management produce, if using the following decision rules: 1) The maximin rule; 2) The maximax rule; 3) The minimax regret rule; 4) Expected value of profit. (5 marks) Bright Ltd is currently suffering from a depression in the market for its products and needs to decide which of three products it should continue produce, so that it can maximise its profits. They have recently employed the services of Bianca Ltd who have researched Bright Ltd and their products and have produced the following information: Bianca Ltd. have provided information for three levels of demand, low, medium and high and the probabilities for each level of demand as 10%, 60% and 30% respectively. The net incomes for each product are: Product A: 50,000, 120,000, 170,000; Product B: 110,000, 185,000, 270,000; Product C: 135,000, 290,000, 160,000. Required: a. Construct the payoff table for the three products. (2 marks) b. Produce, where needed, information which will allow you to state which product you would recommend that management produce, if using the following decision rules: 1) The maximin rule; 2) The maximax rule; 3) The minimax regret rule; 4) Expected value of profit. (5 marks)