Question

Using the below table, Fill in the regret table Success Moderate Success Failure Sell Company 150 150 150 Form Joint Venture 500 592.00 70.00 Sell Software on own 730.00 400 -500 Success Moderate Success Failure Regret Table Sell Company Form Joint Venture Sell Software on own Based on the MiniMax Regret Method, what is the value for the Decision Alternative Form Joint Venture Answer Format: Number: Round to: O decimal places. Enter Answer Here...

Answer 1

Based on mini max regret method

Regret table	Success	Moderate Success	Failure
Sell Company	580	442	0
Form Joint Ventures	230	0	80
Sell software on Own	0	192	650

Regret means opportunity loss

Regret= Best Payoffs – payoff received

Best payoff of Success of Sell software on own = 730

Remaining are called as payoff received

Regret Sell company Success = 730- 150=580

Regret form joint venture success= 730- 500=230

Regret Sell company on own Success = 730- 730=0

Best payoff of Moderate Success of form Joint Venture = 592

Remaining are called as payoff received

Regret Sell company Moderate Success = 592-150=442

Regret form joint venture Moderate success= 592-592=0

Regret Sell company on own Moderate Success = 592-400=192

Best payoff of Failure of Sell company = 150

Remaining are called as payoff received

Regret Sell company failure = 150-150=0

Regret form joint venture failure = 150-70=80

Regret Sell company on own failure = 150-(-500)= 650

Value of Form Joint venture is Success= 230, Moderate Success = 0 and Failure = 80