A furniture company is considering purchasing different alternatives of new products to be sold in the chained stores next season. Currently, there are three types of products that can be possibly considered: chairs, tables and wardrobes. Help the manager of the company to carry out analytics. Considering that the analysis will occur under one of the two possible economic conditions (states of nature), e.g. Good Economic and Poor Economic, each alternative of new products bears a different probability of purchasing cost, shown in the payoff table (Table 4).' ܒܬ ܒܐ ܒܨ Decision State of Nature Conditions Good Economic Poor Economic Probability 0.354 0.654 Chairs $60,000 $30,000 Tables 100,000 -40,000 Wardrobes 30,000 10,000 Table 4. Payoff table a) Which alternative of the products should be chosen under the maxi-max criterion? (3 marks) b) Which alternative of the products should be chosen under the maxi-min criterion? + (3 marks) لے c) Construct an opportunity loss table and determine the best purchasing product using Minimax Regret strategy (5 marks) d) If you want to maximize the expected payoff, which alternative should be chosen? Show your calculation steps. (4 marks)
