A Marketing Manager Is Trying to Decide Which of Four

question 4

Multiple Choice

A marketing manager is trying to decide which of four potential selling prices to charge for a new product. The state of the economy is uncertain and may show signs of recession, growth or boom. The manager has prepared a regret matrix showing the regret for each of the possible outcomes depending on the decision made. 11ec37eb_8ba9_6803_97b9_c9e171e1b4ec__00 If the manager applies the minimax regret criterion to make decisions, which selling price would be chosen?

• A) $40
• B) $45
• C) $50
• D) $55

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Definitions:

Objectivity

The practice of maintaining impartiality and neutrality, avoiding bias and subjective influences in research, reporting, and analysis.

Bias

Prejudice in favor of or against one thing, person, or group compared with another, often in a way considered to be unfair.

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.

Deductive Reasoning

A logical process where a conclusion follows necessarily from the stated premises, moving from the general to the specific.