1. Risk and uncertainty should be considered by organisations when making decisions.
Minto Ltd needs to decide which of three products it should produce and has produced the following information:
There are three levels of demand, low medium and high. The probability for each level is 20%, 50% and 30% respectively.
The net incomes for each product are:
Product A: £110, £170, £250
Product B: £130, £160, £270
Product C: £190, £200, £230
a. Identify and explain the two main types of market research a business could use and why a company would wish to do research (24 marks)
b. Construct the payoff table for the three products. (6 marks)
c. State which product you would recommend that management produce using
(i) The maximin rule
(ii) The maximax rule
(iii) The minimax regret rule
Expected value of profit
can you give the proccess and answer, thank you so much
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