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Construct the payoff table for the three products

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Reference no: EM132980984

Question - Finbarr Ltd is currently suffering from a depression in the market for its products and needs to decide which of three products it should continue produce, so that it can maximise its profits. They have recently employed the services of Pinsar Ltd who have researched Finbarr Ltd and their products and have produced the following information: Pinsar Ltd. have provided information for three levels of demand, low, medium and high and the probabilities for each level of demand as 20%, 50% and 30% respectively.

The net incomes for each product are:

Product A: £60,000, £120,000, £150,000.

Product B: £125,000, £180,000, £255,000.

Product C: £185,000, £210,000, £240,000.

Required - Construct the payoff table for the three products.

Reference no: EM132980984

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