CIMA Exam CIMAPRO19-P01-1 Topic 9 Question 67 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 67
Topic #: 9

[All CIMAPRO19-P01-1 Questions]

A manager must select one of three projects, W, X or Y.

The following payoff table has been prepared to show the outcomes in $000 at three possible levels of demand:

The manager is now preparing a regret matrix.

What figure (in $000) will be shown for Project Y in the regret matrix if the average demand arises?

A150

B110

C520

D160

Show Suggested Answer

Suggested Answer: A

References:

by Glory at Mar 20, 2023, 06:09 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Kendra

5 hours ago

I'm not sure about this one. The payoff table shows the outcomes, but I'm having a hard time figuring out how to calculate the regret matrix. Maybe I should have paid more attention in my decision-making class.

upvoted 0 times

...

Alica

3 days ago

Well, this is a tricky one. If average demand arises, then the payoff for Project Y is $520,000, which is the highest among the three projects. So, the regret for Project Y would be the difference between this and the maximum payoff, which is $160,000. Option C is the correct answer.

upvoted 0 times

...