Purchase Solution

Decision Making at Coffee Planet- Expected Payoffs

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

Solution Summary

The solution provides answers to questions on the use of probability in decision making related to Coffee Planet

Purchase this Solution


Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.