MENU
A marketing manager is trying to decide which of four potential selling prices to charge for a new product. The state of the economy is uncertain and may show signs of recession, growth or boom. The manager has prepared a regret matrix showing the regret for each of the possible outcomes depending on the decision made.
If the manager applies the minimax regret criterion to make decisions, which selling price would be chosen?
Suggested Answer: C
Get Premium CIMAPRO19-P01-1 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
References:
34 comments · newest first
EV
Evangelina
11 months ago
Totally agree, $45 feels like a solid middle ground!
BO
Bonita
11 months ago
Wait, are we sure $40 is the best choice? Seems low for a new product.
IL
Ilda
11 months ago
I think $50 could actually work better in a growth scenario.
JE
Jennifer
12 months ago
Definitely going with $45, seems like the safest bet!
CH
Chu
12 months ago
The minimax regret criterion focuses on minimizing potential regret.
RE
Reita
1 year ago
I remember that the minimax regret approach means we should pick the option with the least worst-case scenario. I think I might lean towards the $45 price based on what we practiced.
TU
Tu
1 year ago
I feel a bit confused about how to calculate the regrets. Should I be focusing on the lowest regret for each price or the overall lowest regret across all scenarios?
CA
Carlton
1 year ago
I think we practiced a similar question where we had to choose the price based on minimizing regret. If I recall correctly, it involves looking at the highest regrets for each price option.
BE
Bernardo
1 year ago
I remember we discussed the minimax regret criterion in class, but I'm not entirely sure how to apply it to this matrix.
JO
Johanna
1 year ago
The minimax regret approach makes sense, but I'm a bit unsure about how to apply it here. I'll need to carefully analyze the regret values to determine the best selling price.
SO
Sommer
1 year ago
Okay, let me think this through step-by-step. I need to find the maximum regret for each selling price and then choose the one with the smallest maximum regret.
ST
Stacey
1 year ago
This regret matrix seems straightforward, but I want to make sure I understand the minimax regret criterion properly before answering.
BO
Bok
1 year ago
Based on the regret matrix, it looks like the selling price of $45 would have the smallest maximum regret, so that's the one I'll go with.
TH
Thaddeus
1 year ago
Hmm, I'm not sure about this one. I'll need to think it through step-by-step to make sure I understand the default path correctly.
GW
Gwenn
1 year ago
This seems like a pretty standard database restore scenario, but I want to make sure I'm not missing anything. I'll carefully review the question and the available options to ensure I select the right solution.
CA
Carlee
1 year ago
This looks like a straightforward question on state diagrams. I'll carefully review each option and determine which ones are true elements of a state diagram.
RE
Reena
1 year ago
Woohoo, time to roll the dice and go for the big bucks with D) $55! Hey, what could possibly go wrong in a recession, right?
EL
Elroy
1 year ago
Hmm, this is a classic decision-making under uncertainty problem. I'm glad I brought my trusty crystal ball to this exam!
RO
Rosalia
1 year ago
C) $50
EL
Elin
1 year ago
B) $45
LA
Lawanda
1 year ago
A) $40
MA
Margurite
1 year ago
C) $50
PA
Paola
1 year ago
B) $45
BI
Billye
1 year ago
A) $40
CA
Casey
2 years ago
I agree, the minimax regret approach is all about playing it safe and avoiding the worst-case scenario. C) $50 is the way to go here.
LA
Latricia
1 year ago
C) $50 seems like the most balanced option, minimizing potential regrets.
GL
Gladis
1 year ago
B) $45 is a bit safer, but still not the best choice.
BR
Brittney
1 year ago
A) $40 would be too risky, we could regret it if the economy booms.
AL
Alison
2 years ago
The minimax regret criterion aims to minimize the maximum possible regret, so the correct answer would be C) $50 since it has the lowest maximum regret of 5.
GE
Gearldine
1 year ago
Agreed, $50 seems like the best choice based on the minimax regret criterion.
DO
Doug
1 year ago
I think we should go with option C) $50 to minimize our maximum regret.
WI
Willard
2 years ago
I agree with Desire, the selling price of $40 minimizes the potential regret in uncertain economic conditions.
MA
Marion
2 years ago
I disagree, I believe the selling price of $45 would be the best choice.
DE
Desire
2 years ago
I think the manager should choose the selling price of $40.