3.7 case 2 decision theory

This document presents Case 2 on decision theory to find the optimal marketing strategy for an automobile company. It provides the conditional payoffs in crores of rupees for two car models, Model X and Model Y, based on likely sales figures of 1, 2, or 3 lac units. It analyzes the models using four decision making criteria: 1) Maximin gain criteria selects Model X; 2) Maximax gain criteria selects Model Y; 3) Laplace criteria selects Model Y; 4) Minimax regret criteria selects Model X. Students are asked to explain the case study on decision theory and the different criteria analyzed.