Zookal Homework Help

Homework Help

  1. Business
  2. Operations Management
  3. very favorable market 250000 270000 100000 s0 states of nature...

Question: very favorable market 250000 270000 100000 s0 states of nature...

Question details

Very Favorable Market $250,000 $270,000 $100,000 S0 States of Nature Average Market 180,000 $185,000 50,000 S0 Unfavorable Market Alternatives Build new plant Subcontract Overtime Do Nothin -$200,000 -$220,000 -$12,000 S0 a) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be Subcontract The value of the return under this decision is $ 270000 b) Using the decision making under uncertainty with the criterion of Maximin The appropriate decision will be Do Nothing The value of the return under this decision is $ 0 c) Using the decision making under uncertainty with the criterion of Equally Likely The appropriate decision will be Subcontract The value of the return under this decisionis S(enter your answer as a whole number).

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution