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Use the Payoff Matrix to Determine the Best Strategy 10%10 \%

Question 79

Multiple Choice

Use the payoff matrix to determine the best strategy.
-A clothing manufacturer must decide which of two clothing lines to emphasize for the spring season, her usual line or a budget line. Her success with each line depends on the state of the economy next year. She estimates the payoff matrix to be as follows:
 Use the payoff matrix to determine the best strategy. -A clothing manufacturer must decide which of two clothing lines to emphasize for the spring season, her usual line or a budget line. Her success with each line depends on the state of the economy next year. She estimates the payoff matrix to be as follows:   Economists believe that there is a  10 \%  chance of a strong economy next year, a  60 \%  chance of a weak economy, and a 30\% chance of an in-between economy. What is the manufacturer's best strategy? A)  Emphasize the budget line B)  Wait and see C)  Emphasize the usual line
Economists believe that there is a 10%10 \% chance of a strong economy next year, a 60%60 \% chance of a weak economy, and a 30\% chance of an in-between economy. What is the manufacturer's best strategy?


A) Emphasize the budget line
B) Wait and see
C) Emphasize the usual line

Correct Answer:

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