I need help with part c C.For what range of P (1) would alternative A be the best choice if the goal is to maximize expected profit?Choose Alternative A if P(#1) is A manager has compiled estimated profits for various capacity alternatives but is reluctant to assign probabilities to the states ofnature. The payoff table is as follows:STATE OF NATURE#1#2А$ 40*165AlternativeВ14110811561*Profit in $ thousands.Click here for the Excel Data Filea. Is there any alternative that would never be appropriate in terms of maximizing expected profit?O Alternative AAlternative BAlternative CNoneb. For what range of P(2) would alternative A be the best choice if the goal is to maximize expected profit?Answer is complete and correct.Choose Alternative A if P(#2) isgreater than 0.639O O O O

Given - Payoff table: Alternative STATE OF NATURE #1 #2 A 40 165 B 141 108 C 115 61

Answered: C. For what range of P (1) would…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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$A l t e r n a t i v e$	$S T A T E O F N A T U R E$
$A l t e r n a t i v e$	$# 1$	$# 2$
$A$	$40$	$165$
$B$	$141$	$108$
$C$	$115$	$61$

C. For what range of P (1) would alternative A be the best choice if the goal is to maximize expected profit? Choose Alternative A if P(#1) is