This Payoff Matrix Gives Potential Dollar Gain Values in Thousands

question 76

Multiple Choice

This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza. If Sam chooses S1, how is he feeling about the business climate?

• A) Sam is feeling pessimistic because he has chosen a maximax strategy.
• B) Sam is feeling optimistic because he has chosen a maximin strategy.
• C) Sam is feeling neither pessimistic nor optimistic because he has chosen neither a maximin nor a maximax strategy.
• D) Sam is feeling both pessimistic and optimistic because he has chosen both a maximin and a maximax strategy.

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Definitions:

Ounce Of Gold

A unit of measure for weighing gold, often used in financial markets and investments to set prices or determine value.

French Francs

The former currency of France before the country adopted the euro, reflecting France's national economic history.

Price Of Pesos

The value or exchange rate of the Mexican Peso compared to another currency, typically reflecting the strength of the Peso in the foreign exchange market.

Dollars In Pesos

Dollars in Pesos typically refers to the conversion rate between the United States Dollar and the Mexican Peso, used to exchange currency between these two units.