(b) The research department of Kwasa Kwasa Ltd has recommended to the marketing department to launch a shampoo of three different types. The marketing manager has to decide one of the types of shampoo to be launched under the following estimated pay offs for various levels of sales: Estimated levels of sales 15, 000 10,000 5, 000 1. Egg shampoo 2. Clinic shampoo 3. Deluxe shampoo 3000 1000 -1000 3000 3000 250 1000 1000 1000 What will be the marketing manager’s decision if iv. Laplace criterion is used? v. Hurwicz criterion is used? Use α = 0.75

(b) The research department of Kwasa Kwasa Ltd has recommended to the marketing department to launch a shampoo of three different types. The marketing manager has to decide one of the types of shampoo to be launched under the following estimated pay offs for various levels of sales: Estimated levels of sales 15, 000 10,000 5, 000 1. Egg shampoo 2. Clinic shampoo 3. Deluxe shampoo 3000 1000 -1000 3000 3000 250 1000 1000 1000 What will be the marketing manager’s decision if iv. Laplace criterion is used? v. Hurwicz criterion is used? Use α = 0.75

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 18E

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