Xs strategy, Managerial Accounting

X's Strategy

X will like to divide his play between his rows in such a way that his expected winnings or losses when Y plays the first column will be equal to his expected winnings or losses when Y plays the second column.

337_table1.jpg

Total = Q + 5(1-Q)

1954_table2.jpg



Total = 4Q + 3(1-Q)

Therefore, Q + (1-Q)5 = 4Q + 3(1-Q)
Giving Q = 2/5    and    (1-Q)    = 3/5

This means that player X should play his first row 2/5th of the time and his second row 3/5 of the time.

Using the same reasoning Y' Strategy;

1 X R + 4(1-R) =     5R + 3(1-R)
Giving R = 1/5    and    (1-R)    = 4/5

This means that player Y should divide his time between his first and second column in the ratio 1:4

This is shown in the following matrix:

768_formula.jpg

Posted Date: 12/8/2012 3:15:06 AM | Location : United States







Related Discussions:- Xs strategy, Assignment Help, Ask Question on Xs strategy, Get Answer, Expert's Help, Xs strategy Discussions

Write discussion on Xs strategy
Your posts are moderated
Related Questions
VALUE ADDED STATEMENTS Are intended to show how much wealth or value has been created by the company’s operations and how the wealth has been shared out to interested groups e.

Graphic method of break even analysis or break even chart The break even point can also be computed graphically. A break even chart is a graphical representation of marginal co

Adm2341 manufactures and sells four different products. The following data are extracted from the most recent financial statements:   Products

Describe the important role that the corporate level strategy has in relation to the development of the business and functional strategy in a multi -business organization

What is the objective of performance budgeting The objectives of performance budgets is to provide a closer linkage between planning and action and also to provide a common bas

Consider the following quality data for three different manufacturers of automobile weather-strips: Weather-strip Bulb Dimension Specification y=20 +or- 4mm

Introduction to pricing decision A pricing decision is one of the most crucial and difficult decision that a firm has to make. It is one of the most difficult decisions. Such

Stages in activity based costing The different stages in activity based costing are listed below and are shown in figure below. 1) Identification of the activities that may


Once the credit information is accumulated the subsequent step is to analyze the gathered information and isolate those matters that may need further investigation. The factors whi