A Company That Is Introducing a New Product Has to Choose

question 50

Essay

A company that is introducing a new product has to choose between four marketing plans,A through D.The marketing plans are forecasted to have varying payoffs,depending on the level of advertising.The probability of high demand is 0.6 and of low demand 0.4.Use the following decision rules to select the marketing plan: maximin,maximax,minimax regret,Laplace,and expected value.
$$\begin{array} {r } { \text { Payoff (Dollars) } } \quad\quad\quad\\\begin{array} { | c | c | c | } \hline \text { Marketing Plan } & \text { High Demand } & \text { Low Demand } \\\hline \text { A } & 100,000 & 25,000 \\\text { B } & 50,000 & 45,000 \\\text { C } & 75,000 & 35,000 \\\text { D } & 125,000 & 10,000 \\\hline\end{array}\end{array}$$

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Definitions:

Ambulate

The ability or act of walking or moving from one place to another, often used in medical contexts regarding patients' mobility.

Instrumental Activities

Tasks that are necessary for independent living, such as managing finances, household chores, and medication management.

Daily Living

Activities and tasks performed on a daily basis necessary for personal care and independent living, such as eating, bathing, and dressing.

Takes Medications

The act of consuming prescribed drugs or supplements according to a healthcare provider's instructions.