Happy Company is going to introduce one of the three new products (alternative) to the market: A, B and C or Do Nothing. Each of the market conditions (favourable, stable or unfavourable) affects the payoff of the products. The company estimates the following payoffs and probabilities: Decision Table with Conditional Values for Happy Company: Market Condition and Payoff (RM) Product Favourable Stable Unfavourable A B 8,000 5,000 7,000 6,000 -5,000 3,000 -1,200 -1,000 6,000 Do Nothing Probability 0.4 0.3 0.3

Happy Company is going to introduce one of the three new products (alternative) to the market: A, B and C or Do Nothing. Each of the market conditions (favourable, stable or unfavourable) affects the payoff of the products. The company estimates the following payoffs and probabilities: Decision Table with Conditional Values for Happy Company: Market Condition and Payoff (RM) Product Favourable Stable Unfavourable A B 8,000 5,000 7,000 6,000 -5,000 3,000 -1,200 -1,000 6,000 Do Nothing Probability 0.4 0.3 0.3

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.2: Elements Of Decision Analysis

Problem 2P

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