Goggle’s digital advertising division is planning to develop…
Goggle’s digital advertising division is planning to develop a new landing page for its ad products. In order to boost customer engagement and revenue, the company is considering four different design approaches: Design A, Design B, Design C, and Design D. Based on market research, Goggle believes that the response to the new landing page will can be characterized into three categories for the purposes of this decision: High Engagement Moderate Engagement Low Engagement For each design, Goggle has estimated the additional monthly revenue (in thousands of dollars) it could generate under each market response scenario. The estimates are summarized in the table below: Design Option High Engagement Moderate Engagement Low Engagement Design A 350 220 -30 Design B 330 260 40 Design C 300 205 90 Design D 340 230 20 Google’s decision-makers want to choose a design that minimizes the “regret” they might experience if another design would have performed better under the actual market response. Question: Which design should Google choose according to the minimax regret criterion?