Use the following payoff table to complete parts (a) through (j). The ACTION probability of event 1 is 0.40, the probability of event 2 is 0.40, and the probability of event 3 is 0.20.Demand 100 200 500ActionBuy 100,A 0oo 2,00o 000Buy 200,B 2 Ooo 00o 400Buy 500 3 00o 2,00o 000(a) Action A is the optimal action based on the maximax criterion because its maximum payoff is the highest of all the actions.(b) Determine the optimal action based
Use the following payoff table to complete parts (a) through (j). Th…
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