I need some guidance on where to start with the following question. It is part of a case report.
Ultimate Gaming is trying to figure out which game they should release next quarter among four possible games. There is uncertainty when it comes to projecting profitability since it depends on the state of the gaming market 6 months in the future. A profit estimate is provided for good v. bad gaming market for the four possible games. UG estimates that the market will be good with a 65% chance.
Profit (in millions)
Alternatives| Bad Market | Good Market
Game 1. 4.1 5.8
Game 2 2.5 7.1
Game 3 5.4 4.9
Game 4 4.5 5.3
What are the multiple ways that this decision can be made?
How can opportunity loss be incorporated into the decision making process?
UG could pay market
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