approaches Southland Corporation\'s decision to produce a new line of recreation
ID: 3058550 • Letter: A
Question
approaches Southland Corporation's decision to produce a new line of recreational products resulted in the need to construct either a small plant or a large plant. The best selection of plant size depends on how the marketplace reacts to the new product line. To conduct an anal marketing management has decided to view the possible long-run d dium, or high. The following payoff table shows the projected profit in millions of dollars 3. emand as low, me- Plant Size Small Large Low 150 50 Long-Run Demand Medium 200 200 High 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 a decision based on the use of the optimistic, conservative, and minimax regret approaches.Explanation / Answer
approaches Southland Corporation's decision to produce a new line of recreational products resulted in the need to construct either a small plant or a large plant. The best selection of plant size depends on how the marketplace reacts to the new product line. To conduct an anal marketing management has decided to view the possible long-run d dium, or high. The following payoff table shows the projected profit in millions of dollars 3. emand as low, me- Plant Size Small Large Low 150 50 Long-Run Demand Medium 200 200 High 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 a decision based on the use of the optimistic, conservative, and minimax regret approaches.
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