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June 23, 2022

Discuss the need and utility of statistical quality control in business decision-making

In an APA formatted Word document complete the following:

Discuss the need and utility of statistical quality control in business decision-making. What are its limitations?

The following is a payoff (in $000) table for three strategies and two states of nature for our company:

Strategy States of Nature

N1 N2

S1 40 60

S2 10 -20

S3 -40 150

Select a strategy using each of the following decision criteria: (a) Maximax, (b) Minimax regret, (c) Maximin, (d) Minimum risk, assuming equiprobable states.

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