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

---

Definitions:

Writing a Claim Message

The process of composing a communication that makes a request or demands action, typically based on a right or agreement.

Positive Relationship

A connection between people that is characterized by mutual respect, trust, support, and positive communication.

Blunt

Being direct and straightforward in communication without the use of softening words or phrases.

Indirect Claim Message Goal

The aim to address a complaint or request in a way that minimizes potential conflict or offense, often by explaining the situation before presenting the actual claim.