CIMA Exam CIMAPRO19-P01-1 Topic 4 Question 85 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 85
Topic #: 4

A marketing manager is trying to decide which of four potential selling prices to charge for a new product. The state of the economy is uncertain and may show signs of recession, growth or boom. The manager has prepared a regret matrix showing the regret for each of the possible outcomes depending on the decision made.

If the manager applies the minimax regret criterion to make decisions, which selling price would be chosen?

A$40

B$45

C$50

D$55

Show Suggested Answer

Suggested Answer: C

References:

by Mariko at Apr 22, 2024, 02:49 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Reena

1 months ago

Woohoo, time to roll the dice and go for the big bucks with D) $55! Hey, what could possibly go wrong in a recession, right?

upvoted 0 times

...

Elroy

1 months ago

Hmm, this is a classic decision-making under uncertainty problem. I'm glad I brought my trusty crystal ball to this exam!

upvoted 0 times

Elin

2 days ago

B) $45

upvoted 0 times

...

Lawanda

14 days ago

A) $40

upvoted 0 times

...

Margurite

25 days ago

C) $50

upvoted 0 times

...

Paola

27 days ago

B) $45

upvoted 0 times

...

Billye

1 months ago

A) $40

upvoted 0 times

...

Casey

2 months ago

I agree, the minimax regret approach is all about playing it safe and avoiding the worst-case scenario. C) $50 is the way to go here.

upvoted 0 times

Latricia

7 days ago

C) $50 seems like the most balanced option, minimizing potential regrets.

upvoted 0 times

...

Gladis

8 days ago

B) $45 is a bit safer, but still not the best choice.

upvoted 0 times

...

Brittney

21 days ago

A) $40 would be too risky, we could regret it if the economy booms.

upvoted 0 times

...

Alison

2 months ago

The minimax regret criterion aims to minimize the maximum possible regret, so the correct answer would be C) $50 since it has the lowest maximum regret of 5.

upvoted 0 times