Author Question: This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive ... (Read 77 times)

HudsonKB16 · **on:** Jul 6, 2018

This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. A minimax Bigg manager choosing S3 would have a greatest possible regret of 2.

CA1 CA2 CA3
S1 5 5 3
S2 9 6 1
S3 10 2 5

Indicate whether the statement is true or false.

Question 2

Decision trees are unreliable for making pricing decisions.

Indicate whether the statement is true or false.

jliusyl · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

Answer: TRUE
Explanation: The greatest possible regret would be 10.

Answer to Question 2

Answer: FALSE
Explanation: Decision trees are useful for making hiring, marketing, investment, equipment, purchasing, and pricing decisions.