You Have a Decision to Invest $10,000 in Any of Four

question 5

Essay

You have a decision to invest $10,000 in any of four different companies. You estimate the probabilities that the economy will be favorable or unfavorable and you estimate the percent returns over the next year. Based on the maximax criterion, what is the choice?

---

Definitions:

Intertype Competition

Competition between retailers that offer different types of formats or products, such as physical stores versus online platforms.

Scrambled Merchandising

A retail strategy where a store sells a wide variety of unrelated products to increase foot traffic and sales.

Dual Distribution

A distribution strategy where a company sells its products both directly to consumers and through intermediaries.

Mixed-Line Merchandising

A retail strategy that involves offering a wide variety of unrelated products in a single store to attract diverse customers.