20. You plan to manufacture a new product for sale next year, and you can decide to make either a small quantity, in anticipation of a poor economy and few sales, or a large quantity, hoping for brisk sales. Your expected profits are indicated in the following table.
| Economy | |||
|---|---|---|---|
| Poor | Good | ||
| Quantity | Small | $500,000 | $300,000 |
| Large | $100,000 | $900,000 | |
If you want to avoid risk and believe that the economy is playing an optimal mixed strategy against you in a two-person zero-sum game, then what is your optimal mixed strategy and the resulting expected value? Discuss some alternative ways to go about making your decision.