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Recommend a decision based on the use of the optimistic

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Reference no: EM133089400

The best selection of plant size depends on how the marketplace reacts to the new product line. To conduct an analysis, marketing management has decided to view the possible long-run demand as low, medium or high. The following payoff table shows the projected profit in millions of dollars:

Long-Run Demand

Low Medium High

Plant

Size

Small, d1 150 200 200

Large, d2 50 200 500

Recommend a decision based on the use of the optimistic, conservative and minimax

regret approaches.

(For this problem you may submit handwritten solution).

Reference no: EM133089400

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