Multiple Choice
Figure 12-3
The Lee Company must choose between two mutually exclusive alternatives. With alternative 1 an inferior product will be marketed that is best suited to low levels of demand whereas alternative 2 is a superior product that is best suited to high levels of demand. There are only two possible levels of demand - high and low and the probabilities of each event occurring is 0.5. The predicted profits for each alterative are: 
-Refer to Figure 12-3. Using the data above relating to the Lee Company, which alternative should be selected using the maximin criterion?
A) Neither alternative
B) Alternative 1
C) Alternative 2
D) It is not possible to use the maximin criterion for the data given.
Correct Answer:
Verified
Correct Answer:
Verified
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