The following decision strategy outputs the most profitable shoe a retailer can sell. The profit is the selling Price of the shoe, minus the Cost to acquire the shoe.

The details of the shoes are provided in the following table:

According to the decision strategy, what is the output of component in the blank space highlighted in red?
- Nike, Adidas, Puma, Reebok
- Reebok, Puma, Adidas, Nike
- Reebok
- Nike
Answer(s): C
Explanation:
Understand the strategy objective: The decision strategy is designed to output the most profitable shoe. The profit is calculated as Profit = Price - Cost.
Evaluate the provided data:
Nike: Profit = $69 - $59 = $10
Adidas: Profit = $65 - $45 = $20
Puma: Profit = $85 - $65 = $20
Reebok: Profit = $75 - $50 = $25
Determine the most profitable shoe: According to the calculations, Reebok has the highest profit ($25).
Fill in the blank: Therefore, the output of the component in the blank space highlighted in red should be Reebok, which has the highest profit.
Reference:
The strategy design and output decision rules are outlined in the sections on "Understanding Next-Best-Action Designer arbitration" and "Next-Best-Action strategy framework components" in the Pega Customer Decision Hub User Guide.
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