The Alternatives 1 and 2 in the Following Payoff Table

question 85

Essay

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. Determine the best alternative (course of action)for the EKA manufacturing company using the maximax criterion.

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Definitions:

Assertiveness

Expressing one's opinions and emotions respectfully while maintaining confidence and assertiveness, without resorting to aggression.

Internal Visibility

Refers to the extent to which an employee's work and contributions are recognized and visible within their organization.

Assertiveness

Characterizes the ability to express one’s opinions and needs in a confident and respectful manner.

Ingratiation

A strategic social behavior aimed at gaining favor or acceptance from others, often through flattery or conformity.