A Plant Manager Considers the Operational Cost Per Hour of Five

question 63

Multiple Choice

A plant manager considers the operational cost per hour of five machine alternatives.The cost per hour is sensitive to three potential weather conditions: cold, mild, and warm.The following table represents the operations cost per hour for each alternative-state of nature combination: Assume that for a randomly selected day, there is a 30% probability of cold weather, 50% probability of mild weather, and 20% probability of warm weather.What alternative is best using EMV?

• A)Machine 1
• B)Machine 2
• C)Machine 3
• D)Machine 4

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Definitions:

Experience of Flow

A mental state of deep focus and immersion in an activity, where time seems to pass unnoticed, and performance is at its peak.

External Consequences

Outcomes or repercussions of actions that affect parties outside the individual or entity responsible for the actions.

Organizational Creativity

The capacity of a company or organization to generate novel and useful ideas and solutions.

Harmony and Cohesion

The state of being unified or in agreement within a group, which fosters a positive and collaborative environment.