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Given the following conditional value table: States of Nature Very Favorable Unfavorable Average Market Alternatives Market Market Build new plant - $200,000 - $220,000 $250,000 $180,000 $185,000 $50,000 Subcontract $270.000 Overtime $100,000 - $12,000 $0 Do Nothing $0 $0 a) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be The value of the return under this decision is $ b) Using the decision making under uncertainty with the criterion of Maximin The appropriate decision will be The value of the return under this decision is $ c) Using the decision making under uncertainty with the criterion of Equally Likely The appropriate decision will be The value of the return under this decision is $ (enter your answer as a whole number).

Given the following conditional value table: States of Nature Very Favorable Unfavorable Average Market Alternatives Market Market Build new plant - $200,000 - $220,000 $250,000 $180,000 $185,000 $50,000 Subcontract $270.000 Overtime $100,000 - $12,000 $0 Do Nothing $0 $0 a) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be The value of the return under this decision is $ b) Using the decision making under uncertainty with the criterion of Maximin The appropriate decision will be The value of the return under this decision is $ c) Using the decision making under uncertainty with the criterion of Equally Likely The appropriate decision will be The value of the return under this decision is $ (enter your answer as a whole number).

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section9.4: The Precision Tree Add-in
Problem 9P
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Given the following conditional value table: States of Nature Very Favorable Average Unfavorable Alternatives Market Market Market Build new plant $250,000 $270,000 $180,000 $185,000 $50,000 $0 - $200,000 - $220,000 Subcontract $100,000 $0 Overtime - $12,000 Do Nothing $0 a) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be The value of the return under this decision is $ b) Using the decision making under uncertainty with the criterion of Maximin The appropriate decision will be The value of the return under this decision is $ c) Using the decision making under uncertainty with the criterion of Equally Likely The appropriate decision will be The value of the return under this decision is $ (enter your answer as a whole number).
Transcribed Image Text:Given the following conditional value table: States of Nature Very Favorable Average Unfavorable Alternatives Market Market Market Build new plant $250,000 $270,000 $180,000 $185,000 $50,000 $0 - $200,000 - $220,000 Subcontract $100,000 $0 Overtime - $12,000 Do Nothing $0 a) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be The value of the return under this decision is $ b) Using the decision making under uncertainty with the criterion of Maximin The appropriate decision will be The value of the return under this decision is $ c) Using the decision making under uncertainty with the criterion of Equally Likely The appropriate decision will be The value of the return under this decision is $ (enter your answer as a whole number).
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9781337406659
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