The Table Shows Both Prospective Profits and Losses for a Company,depending

question 45

Essay

The table shows both prospective profits and losses for a company,depending on what decision is made and what state of nature occurs.Use the information to determine what the company should do. $$\begin{array} { c | ccc } && { \text { State of Nature } } \\\text { Decision } & s _ { 1 } & s _ { 2 } & s _ { 3 } \\\hline d _ { 1 } & 30 & 80 & - 30 \\d _ { 2 } & 100 & 30 & - 40 \\d _ { 3 } & - 80 & - 10 & 120 \\d _ { 4 } & 20 & 20 & 20\end{array}$$
a.if an optimistic strategy is used.
b.if a conservative strategy is used.
c.if minimax regret is the strategy.

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Definitions:

Price Discrimination

A pricing strategy where companies charge different prices to different customers for the same product or service, often based on willingness to pay, market segment, or purchase location.

Supply Chain

The interconnected network of entities involved in producing, handling, and distributing a specific product, from raw materials to end consumers.

Consumer Markets

Markets comprised of individuals and households that purchase goods and services for personal consumption rather than for resale or business use.

Exchange Process

The exchange process is the act of obtaining a desired product from someone by offering something in return, foundational to the concept of trade in marketing.