What is the chance event for southland''s problem

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Reference no: EM1384683

Southland Corporation's decision to produce a new line of recreational product resulted in the need to construct either the small plant or a large plant. The best selection of plant size depends on how the market place reacts to the new product line. To conduct an analysis, marketing management has decided to view the possible long-run demand as either low, medium, or high. The following payoff table shows the projected profit in millions of dollars

Long-Run Demand
Plant Size low Medium High
Small 150 200 200
Large 50 200 500

a. What is the decision to be made, and what is the chance event for Southland's problem?

b. Construct an influence diagram

c. Construct a decision tree

d. Recommend decision based on the use of optimistic, conservative, and minimax regret approach

Reference no: EM1384683

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