Blackbeard’s Phantom Fireworks is considering introducing two new bottle rockets.The company can add both to the current line,neither, or just one of the two.The success of the products depends on consumers’ reactions.The reactions can be summarized as good, fair,or poor.The company’s revenues are estimated in the payoff table in Exerci 11.Compute the expected monetary value for each decision.(Exerci 11a,Goal 3)
purcha commercial television time during the upcoming NCAA basketball final. If both teams that play in the game are from warm parts of the country, it estimates that only a small proportion of the viewers will be interested in the jackets. However, a matchup between two teams who come from cold climates would reach a large proportion of viewers who wear jackets. Should it purcha commercial television time?
•General Electric is considering three options regarding the prices of refrigera-tors for next year. GE could (1) rai the prices 5 percent, (2) rai the prices
2.5 percent, or (3) leave the prices as they are. The final decision will be bad
on sales estimates and on GE’s knowledge of what other refrigerator manufac-turers might do.
In each of the cas the decision is characterized by veral alternative cours of action and veral factors not under the control of the decision maker. For example, Banana Republic has no control over which teams reach the NCAA basketball final. The cas characterize the nature of decision making. Possible decision alternatives can be listed, possible future events determined, and even probabilities established, but the decisions are
