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Pizza King and Noble Greek are two competing restaurants. Each must determine simultaneously whether to undertake small, medium, or large advertising campaigns. Pizza King believes that it is equally...

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Pizza King and Noble Greek are two competing restaurants. Each must determine simultaneously whether to undertake small, medium, or large advertising campaigns. Pizza King believes that it is equally likely that Noble Greek will undertake a small, a medium, or a large advertising campaign. Given the actions chosen by each restaurant, Pizza King’s profits are as shown in Table.

 

 

Noble Greek Chooses

 

Pizza King Chooses

Small

Medium

Large

Small

$6,000

$5,000

$2,000

Medium

$5,000

$6,000

$1,000

Large

$9,000

$6,000

$0

For the maximin, maximax, and minimax regret criteria, determine Pizza King’s choice of advertising campaign.

Answered Same Day Dec 24, 2021

Solution

Robert answered on Dec 24 2021
130 Votes
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