Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be​ unpredictable, so​ Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But​ Build-Rite must decide now whether to hire more​ employees, do​ nothing, or develop subcontracts with other home improvement contractors.​ Build-Rite has developed the following payoff​ table:
c. The best decision according to laplace criterion is alternative
and the weighted payoff for this decision is $
(Enter your response as an integer.)
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Transcribed Image Text:c. The best decision according to laplace criterion is alternative and the weighted payoff for this decision is $ (Enter your response as an integer.)
Demand for Home Improvements
Alternative
Low
Moderate
High
$395,000
Hire
$187,000
($189,000)
$75,000
$49,000
Subcontract
$291,000
$165,000
$607,000
$322,000
Do nothing
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Transcribed Image Text:Demand for Home Improvements Alternative Low Moderate High $395,000 Hire $187,000 ($189,000) $75,000 $49,000 Subcontract $291,000 $165,000 $607,000 $322,000 Do nothing
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