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Coffee Planet is considering selling juices along with its other products.

States of Nature

High Sales Med sales Low Sales

A(0.2) B(0.5) C(0.3)

A1 (sell juices) 3000 2000 -6000
A2 (don't sell juices) 0 0 0

The probabilites given above represent states of nature and decision maker's (e.g.,manager) degree of uncertainties and personal judgement on occurence of each state. Determine the expected payoff for actions A1 and A2 above? What would be your suggestions?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M931542

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