Probability and Decision Analysis
A smartphone supplier in Sydney is considering threealternative investment options: a large store, a small store, or anoutlet in the shopping mall. Â
Profits from selling smartphones will be affected by thecustomer demand for smartphones in Sydney. The following payofftable shows the profit that could result from each investment, indollars ($). Â
Investment type | Customer Demand | | |
| Low | Medium | High |
Large Store  | 7,000  | 6,000  | 5,000  |
Small Store  | 2,000  | 8,000  | 6,000  |
Outlet in Shopping Mall  | 8,000  | 15,000  | 20,000  |
Probability  | 0.2  | 0.5  | 0.3  |
What choice should be made by the optimistic decisionmaker?
What choice should be made by the pessimistic decisionmaker?
Compute the regrettable from the data.
What decision should be made under minimax regretapproach?
What choice should be made under the expected valueapproach?
With excel
