Business Decision Analysis

Business Decision Analysis

3-17

(A)

Kenneth Brown in this particular situation is facing the uncertainty decision because the scenario is uncertain for Mr. Kenneth Brown. There are the chances that Mr. Kenneth Brown can make the profit of $ 300,000 by investing in the sub 100 and there is also the chance of the loss for Mr. Kenneth Brown that if he invests in the sub 100 then there is the chance of loss of $ 200,000. In this situation Mr. Kenneth Brown is facing uncertain type of decision.

(B)

Mr. Kenneth Brown should use the Maximax decision approach because this approach looks ...