Payoff table for the two alternative courses of action Courses of action States of nature Occurrence of low demand Occurrence of high demand Occurrence of low demand Occurrence of high demand Occurren

Abu Dhabi School of Management Decision Analysis Individual out of class assessment May 2018 Q1 Payoff table for the two alternative courses of action The probability of low demand occurring is 0.6 The probability of high demand occurring is 0.4 Construction of the payoff table for the two alternate causes of action Courses of action States of nature Occurrence of low demand Occurrence of high demand A Step by step introduction $ 50,000 $ 700,000 A concentrated introduction -$ 600,000 $ 1,000,000 Probability 0.6 0.4 The optimal decision based on the Maximax