Instructions
In an APA formatted Word document complete the following:
Discuss the need and utility of statistical quality control in business decision-making. What are its limitations?
The following is a payoff (in $000) table for three strategies and two states of nature for our company:
|
Strategy |
States of Nature |
|
|
|
N1 |
N2 |
|
S1 |
40 |
60 |
|
S2 |
10 |
-20 |
|
S3 |
-40 |
150 |
Select a strategy using each of the following decision criteria: (a) Maximax, (b) Minimax regret, (c) Maximin, (d) Minimum risk, assuming equiprobable states.
