Question: [ 2 0 points ] Aaliyah Brown owns a small bakery named Sweet Delights and is considering expanding her product line with different dessert options.
points Aaliyah Brown owns a small bakery named Sweet Delights and is considering
expanding her product line with different dessert options. She's presented with the following
alternatives:
For example, if Aaliyah chooses 'Cupcake Bliss' dessert and if there is a favorable market, she will
realize a profit of $ On the other hand, if the market is unfavorable, Aaliyah will suffer a loss of $ Aaliyah has always been a very optimistic decision maker.
a What type of decision is Aaliyah facing?
b What decision criterion should Aaliyah use as an optimistic decision maker?
c Which dessert alternative is the best according to the decision criterion in b
d If a pessimistic approach is used, what criterion should be used?
e If Aaliyah is using a pessimistic approach, which dessert alternative should be chosen?
Why?
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