Question

anufacturing Company must make a decision regarding the level of sales and dedication to a new product. There are 2 possible decisions to be evaluated. The potential Profit from each decision alternative depends on the market acceptance which may be high, medium or low. If market acceptance is high, each of the three decision alternatives, d1, d2 will yield a profit of 300 and 260 thousand dollars respectively. If the demand turns out to be medium; then the profits will be 140 and 290 thousand dollars respectively. If the demand turns out to be low; then the profits will be 90 and 220 thousand dollars respectively. The prior probability estimates of demand to be high, medium, and low are 0.7, 0.1, and 0.2 respectively.

Answer 1

The subject of this question is business. The question is asking for a decision analysis regarding the level of sales and dedication to a new product.

Step-by-step explanation:

The subject of this question is business. The question is asking for a decision analysis regarding the level of sales and dedication to a new product. The question provides information about the potential profit from each decision alternative based on market acceptance.