Response to the following problem:
Bees Candy Company must decide whether or not to introduce a new lower-calorie candy assortment for Christmas. Management feels that if it introduces the candy, it will earn a profit of $150,000 if sales are 70,000 pounds and a profit of $50,000 if sales are 40,000 pounds. It will lose $100,000 if sales are only 10,000 pounds. If Bees does not introduce the lower-calorie candy assortment, it believes it will lose $20,000 due to lost sales.
a. Construct a payoff table for this problem.
b. Should Bees introduce the candy if management is conservative?
c. Construct a regret table for this problem.
d. If Bees management uses the minimax regret criterion, should the new candy be introduced?