Question:

A)Using the information in Table 2, which alternative is BEST in accordance with a decision criterion of minimax regret?

Group of answer choices

Method C

Method D

Method B

Method A

B) Using the information in Table 2, which alternative is BEST if further study revealed that the probability of high growth is 0.5, the probability of medium growth is 0.3, and the probability of low growth is 0.2?

Group of answer choices

Method D

Method A

Method C

Method B

TIME SENSITIVE. 30 MINS LEFT TO SUBMIT

Use the following information to answer questions 8-9. A company that is introducing a new product has to choose between four different manufacturing methods, referred to as methods A, B, C and D. Depending on the demand for the product, they forecast different levels of profits for the year (values are in thousands). The company identified three possible states of nature for economic growth, and named them High, Medium, and Low. Table 2 High Medium Low Method A $450 $670 $780 Method B $950 $320 $200 Method C $575 $375 $775 Method D $800 $400 $300