This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company.A minimax Bigg manager choosing S3 would have a greatest possible regret of 2.
CA1 CA2 CA3
S1 5 5 3
S2 9 6 1
S3 10 2 5

Question

Quizplus · Accepted Answer

To find the worst-case scenario for each strategy, we need to find the maximum value in each row. For S1, the maximum value is 5; for S2, the maximum value is 9, and for S3, the maximum value is 10. Therefore, if Bigg Company chooses strategy S3, the worst-case scenario (i.e., the highest possible regret value) would be 2. This means that the minimax Bigg manager choosing S3 would have a greatest possible regret of 2, making option A true.

This Regret Matrix Gives Values for Strategies S1, S2, and S3