Question: The Thompson Lumber Co . must decide whether or not to expand its product line by manufacturing and marketing a new product - backyard storage
The Thompson Lumber Co must decide whether or not to expand its product line by manufacturing and marketing a new product backyard storage sheds. They developed three decision alternatives: Construct a large plant to manufacture the sheds, Construct a small plant, or Do nothing. They also estimate that demand for storage sheds could be High or Low. The payoffs are in the following table:
Decision Alternatives Demand
High Low
Large Plant
Small Plant
Do Nothing
This problem description and data applies to questions
What is the best decision under Maximax strategy?
Group of answer choices
Build Small Plant
Do Nothing
Build Large Plant
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