The Alternatives 1 and 2 in the Following Payoff Table

question 41

Multiple Choice

The 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,i = 1,2,3) 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. $$\begin{array} { l c c c } & { \text { States of nature } } \\& \mathrm { s } _ { 1 } & \mathrm {~s} _ { 2 } & \mathrm {~s} _ { 3 } \\\text { Alternative (strategy) 1 } & 10 & 80 & 70 \\\text { Alternative (strategy) 2 } & 60 & 120 & 50\end{array}$$
The best alternative (course of action) for the EKA manufacturing company using the maximin criterion is strategy __ which assures a guaranteed minimum payoff of _____.

• A)1,$10,000
• B)2,$120,000
• C)1,$100,000
• D)2,$50,000
• E)2,$80,000

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Definitions:

Escalatory Spirals

A process where actions and reactions lead to an increase in the intensity of a conflict.

Interpersonal Conflict

A disagreement or conflict between individuals that can range from minor disagreements to more significant disputes.

Emotional Intensity

A measure of the depth and strength of emotional experiences, significantly influencing personal relationships and perception.

Conflict Skills

Conflict Skills are abilities or techniques used to manage, resolve, or address disagreements or differences in a constructive manner.