The managers of Upscale' Promotions Ltd. need to decide regarding the venue to use for the...

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The managers of "Upscale' Promotions Ltd. need to decide regarding the venue to use for the launch of their existing new product line. They have developed a payoff table for three locations: Altamont, Blaze and Coast; and have also identified three states of nature (the crowd response / turn-out) Large, Moderate and Low: A. B. C. D. E. F. G. Locations Altamont Blaze Coast Payoffs are Profits Crowd Response (State of Nature) Large Moderate Low 750 650 600 370 410 450 -75 <-20 120 What decision should "Upscale" managers make if the maximax criterion is used? (2 marks) What decision should "Upscale" managers make if the maximin criterion is used? (2 marks) What decision should "Upscale" managers make if the LaPlace criterion is used? (2 marks) Using the Hurwicz criterion with a-0.65, what decision should "Upscale" managers make? (3 marks) Using a minmax regret approach, what decision should "Upscale" managers make? (4 marks) If the probability of getting out a large crowd is 43%, the probability of getting out a moderate size crowd is 22%, and the probability of getting out a small crowd is 35%. Using expected monetary values, what decision should be made and what is that optimal expected value? (5 marks) Construct the appropriate decision tree to help "Upscale" managers make the appropriate decisions. This tree must be constructed in logical order with labels and net payoffs. The managers of "Upscale' Promotions Ltd. need to decide regarding the venue to use for the launch of their existing new product line. They have developed a payoff table for three locations: Altamont, Blaze and Coast; and have also identified three states of nature (the crowd response / turn-out) Large, Moderate and Low: A. B. C. D. E. F. G. Locations Altamont Blaze Coast Payoffs are Profits Crowd Response (State of Nature) Large Moderate Low 750 650 600 370 410 450 -75 <-20 120 What decision should "Upscale" managers make if the maximax criterion is used? (2 marks) What decision should "Upscale" managers make if the maximin criterion is used? (2 marks) What decision should "Upscale" managers make if the LaPlace criterion is used? (2 marks) Using the Hurwicz criterion with a-0.65, what decision should "Upscale" managers make? (3 marks) Using a minmax regret approach, what decision should "Upscale" managers make? (4 marks) If the probability of getting out a large crowd is 43%, the probability of getting out a moderate size crowd is 22%, and the probability of getting out a small crowd is 35%. Using expected monetary values, what decision should be made and what is that optimal expected value? (5 marks) Construct the appropriate decision tree to help "Upscale" managers make the appropriate decisions. This tree must be constructed in logical order with labels and net payoffs.

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Answer Lets go through each criterion to determine the decision for Upscale managers A Maximax Criterion Under the maximax criterion we choose the opt... View the full answer