Determine which product should be produced


A company must decide now which of three products to make next year to plan and order proper materials. The cost per unit of producing each product will be determined by whether a new union labor contract passes or fails. The cost per unit for ecah product, given each contract result, is shown in the following payoff table

contract outcome
product pass fail
1 $7.50 $6.00
2 4.00 7.00
3 6.50 3.00

Determine which product should be produced, using the following decision criteria.

a. Minimin
b. Minimax

 

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Basic Statistics: Determine which product should be produced
Reference No:- TGS0113788

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