This Payoff Matrix Gives Potential Dollar Gain Values in Thousands

question 3

Multiple Choice

This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza.If Sam chooses S1, how is he feeling about the business climate? CA1 CA2 CA3
S1 13 14 7
S2 7 17 12
S3 31 29 4
S4 20 12 21

• A)Sam is feeling pessimistic because he has chosen a maximax strategy.
• B)Sam is feeling optimistic because he has chosen a maximin strategy.
• C)Sam is feeling neither pessimistic nor optimistic because he has chosen neither a maximin nor a maximax strategy.
• D)Sam is feeling both pessimistic and optimistic because he has chosen both a maximin and a maximax strategy.

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Definitions:

Offeror

The party in a contract negotiation who proposes a set of terms to another party (the offeree), initiating the offer for a contract.

Offeree

The person or entity to whom an offer is made, especially in the context of contract law.

Quasi-Contracts

Legal obligations created by courts where no true contract exists, to prevent unjust enrichment of one party at the expense of another.

Bilateral Contract

An agreement involving two parties where each side promises to perform a certain duty or pay a specified amount.