Alternatives 1 and 2 in the Following Payoff Table Represent

question 75

Multiple Choice

Alternatives 1 and 2 in the following payoff table represent the two possible manufacturing strategies that the EKA manufacturing company can adopt.The level of demand affects the success of both strategies.The states of nature (S_i) represent the levels of demand for the company products.S₁,S₂,and S₃ characterize High,Medium,and Low demand,respectively.The payoff values are in thousands of dollars. $\begin{array}{lccc} &&\underline{{\text { States of nature }}} \\& s_{1} & s_{2} & s_{3} \\\text { Alternative (strategy) } 1 & 110 & 80 & 70 \\\text { Alternative (strategy) } 2 & 60 & 120 & 50\end{array}$


The best alternative (course of action) for the EKA manufacturing company using the maximin criterion is strategy _____ and the best possible payoff is __________.

• A)1,$50,000
• B)2,$120,000
• C)1,$100,000
• D)1,$70,000
• E)2,$80,000

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Definitions:

Essentialism

is the belief that objects, individuals, or concepts have a set of essential attributes that define their identity.

Breadwinners

Individuals, traditionally men, who are the primary providers of financial support for their families.

Homemakers

Individuals who manage household duties including caring for family members, cleaning, and cooking, often without receiving formal wages.

Essentialist Arguments

The concept that certain attributes are inherent, natural, and fixed to specific groups or categories of people.