Table 14-5 Ming and Henri Each Run One of the Two Dry

question 58

Multiple Choice

Table 14-5

Ming and Henri each run one of the two dry cleaning facilities in the town of Scaraby.Both consider offering free pickup and delivery services.Table 14-5 shows the payoff matrix containing the expected quarterly profits for each firm.
-Refer to Table 14-5.Does Ming have a dominant strategy? If yes, what is it?

• A)Yes, Ming's dominant strategy is to offer free pickup and delivery.
• B)No, Ming does not a dominant strategy - his best outcome depends on what Henri does.
• C)Yes, Ming's dominant strategy is to not to offer free pickup and delivery.
• D)Yes, Ming's dominant strategy is to wait to see what Henri does first.

---

Definitions:

Alpha

In statistics, alpha often denotes the level of significance, a threshold below which the null hypothesis is rejected.

Chi-Square

A statistical test used to determine if a significant relationship exists between two categorical variables in a contingency table.

Degrees of Freedom (df)

Number of values or quantities free to vary when a statistic is used to estimate a parameter.

Expected Frequency

In statistics, the frequency expected in a category of a contingency table under the assumption that the null hypothesis is true.