The Alternatives 1 and 2 in the Following Payoff Table

question 43

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) 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. The best alternative (course of action) for the EKA manufacturing company using the maximin criterion is strategy __ and the best possible payoff is _____.

• A)1,$50,000
• B)2,$120,000
• C)1,$100,000
• D)2,$70,000
• E)2,$80,000

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