Solve the problem.A company has three different marketing strategies that produce different results depending upon whether inflation is above 6%, between 3% and 6% inclusive, or below 3% annually. The experts cannot predict inflation for the next year. The company has three plans of action and will implement these at varying percentages of its total operation. The payoff matrix for these three plans is given below, with values given in hundred thousands. What is the marketing strategy for the company that will yield the best expected value?  

A. The company should use Plan 1 with probability 1, Plan 2 with probability 0, and Plan 3 with probability 0.
B. The company should use Plan 1 with probability 1/3, Plan 2 with probability 1/3, and Plan 3 with probability 1/3.
C. The company should use Plan 1 with probability 0, Plan 2 with probability 1, and Plan 3 with probability 0.
D. The company should use Plan 1 with probability 5/13, Plan 2 with probability 0, and Plan 3 with probability 8/13.


Answer: D

Mathematics

You might also like to view...

Solve the problem. Use 3.14 for ?. Round your answer to the nearest hundredth.Glenda wants to glue glitter over a piece of felt shaped like a parallelogram with a height of 32 in. and a base of 54 in. If the glitter costs $0.90 per ft2, how much will it cost to cover the felt?

A. $1555.2 B. $43.20 C. $10.80 D. $129.60

Mathematics

Solve the problem.During one year, the Cheung's real estate bill included $333 for county services. Of this amount, $125 went to the highway department. What percent did the county highway department receive? Round your answer to two decimal places.

A. 37.24% B. 37.54% C. 62.46% D. 20.80%

Mathematics

Simplify the expression by removing parentheses and combining like terms.0.2(35 + 25x) - 0.5(8 + 2x)

A. 6x + 3 B. 4x + 3 C. 5x - 3 D. 8x - 11

Mathematics

Use the properties of logarithms to find the exact value of the expression. Do not use a calculator.log135 15 + log135 9

A. 9 B. 15 C. 1 D. 135

Mathematics