What will be her decision based on Pessimist criteria? b) What will be her decision based on Optimistic criteria? c) What will be her decision based Laplace criteria
Sonia is planning to start a new designer cloth shop. Her problem is to decide how large her shop should be.
The annual returns will depend on both the size of her shop and a number of marketing factors related to the
current market conditions and demand for designer wear. After a careful analysis, Sonia came up with the
following table
Size of Shop Good Market (R.O.) Fair Market (R.O.) Poor market (R.O.)
Small Scale 1024 9765 −500
Medium Scale 1500 3000 −2000
Large Scale 2000 3000 −4000
Very Large Scale 3000 5000 −7000
a) What will be her decision based on Pessimist criteria?
b) What will be her decision based on Optimistic criteria?
c) What will be her decision based Laplace criteria?
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