Kite 'N String manufactures old-fashioned diagonal and box kites from high-strength paper and wood
guru2009 (Not rated)
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| Sapphire Weekday is a restaurant chain and it allows three franchising option for investors. The full franchising option charges an investor $100,000 every year but allow the investor to keep all the profit. The half franchising option charges an investor $30,000 and allows the investor to keep 50% of the profit. The fixed franchising option pays an investor $25,000 every year with no profit sharing. | ||||||||||||||||||||||||||||||||||||
| Joan Joyce is considering opening up a Sapphire Weekday franchise in Haleiwa. She estimated that if the business is good, the profit of the restaurant would be about $200,000, but if the business is bad, the profit would only be about $100,000. Forecast indicates that 30% of the time the business will be good and 70% it will be bad. Which would be her best option based on the following criterion? | ||||||||||||||||||||||||||||||||||||
| 1 | Average payoff | |||||||||||||||||||||||||||||||||||
| 2 | Maximax (aggressive) | |||||||||||||||||||||||||||||||||||
| 3 | Maximin (conservative) | |||||||||||||||||||||||||||||||||||
| 4 | Minimax regret (opportunity loss) | |||||||||||||||||||||||||||||||||||
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11 years ago
Kite 'N String manufactures old-fashioned diagonal and box kites from high-strength paper and wood
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