A company is evaluating 3 different distribution plans for a

Last updated: 7/27/2022

A company is evaluating 3 different distribution plans for a new product. The company has developed best case (60% probability) and worst case (40 % probability) estimates for each plan. Results are summarized in the table below. What is the optimal decision based on the maximum expected value criterion? Worst Best Plan 1 -2 10 Plan 2 3 6 Plan 3 4 5 Prob 4 0.6