Answer (C) is correct . The expected value of an action is found by multiplying the probability of each possible outcome by its payoff and summing the products. It represents the long-term average payoff for repeated trials. If estimates of sales and probabilities are known, expected value analysis can be used to determine budgeted sales.
Answer (A) is incorrect because Linear programming is used to optimize a function, such as profits or costs, given certain constraints.
Answer (B) is incorrect because The minimax regret criterion is a decision rule developed in game theory. It chooses the option with the set of outcomes that includes the lowest maximum opportunity cost.
Answer (D) is incorrect because Monte Carlo simulation involves adding random numbers to otherwise deterministic models to simulate the uncertainty inherent in real-world situations.
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