Alternatives 1 and 2 in the Following Payoff Table Represent

question 34

Multiple Choice

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) 1,$70,000
• E) 2,$80,000

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Definitions:

F-Test

A statistical test used to compare the variances of two populations to see if they are significantly different.

Breaking Strength

The maximum amount of stress or force a material can withstand before it breaks or fails.

Mean Breaking Strength

The average force required to break a material or object under tension tests.

Test Statistic

A numerical value computed from sample data to evaluate a hypothesis in statistical analysis.