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The Super Cola Company must decide whether or not to introduce a new diet soft drink....
The Super Cola Company must decide whether or not to introduce a new diet soft drink. Management feels that if it does introduce the diet soda it will yield a profit of $1.2 Million if sales are around 60 million, a profit of $300,000 if sales are around 30 million, or it will lose $2.1Million if sales are only around $1 million bottles. If Super Cola does not market the new diet soda, it will suffer a loss of $500,000.
a.Construct a payoff table for this problem.
b.Construct a regret table for this problem
.c.Should Super Cola introduce the soda if the company:(1) is conservativeand why;(2) is optimisticand why;
(3) wants to minimize its maximum disappointmentand why?
d.An internal marketing research study has found P(60 million in sales) = 1/3; P(30 million in sales) = 1/2; P(1 million in sales) = 1/6. Should Super Cola introduce the new diet soda?
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The Super Cola Company must decide whether or not to introduce a new diet soft drink. Management feels that if it does introduce the diet soda it will yield a profit of $1.2 Million if sales are around 60 million
ekkarill92 answered 2 years agoRelated Solutions
The Super Cola Company must decide whether or not to introduce a new diet soft drink....
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or it will lose $2 million if sales are only around 1 million
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