A company that is introducing a new product has to choose between four different manufacturing methods, referred to as methods A, B, C and D. Depending on the demand for the product, they have forecasted different levels of expenses for the year (values are in thousands). The company has identified three possible states of nature for economic growth, and named them High, Medium, and Low. Which alternative is best in accordance with an optimistic outlook? Which alternative is best according to a pessimist?

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The Answer of A company that is introducing a new product has to choose between four different manufacturing methods, referred to as methods A, B, C and D. Depending on the demand for the product, they have forecasted different levels of expenses for the year (values are in thousands). The company has identified three possible states of nature for economic growth, and named them High, Medium, and Low. Which alternative is best in accordance with an optimistic outlook? Which alternative is best according to a pessimist?

A Company That Is Introducing a New Product Has to Choose