Consider the Following Decision Table with Rewards in $ Millions

question 7

Multiple Choice

Consider the following decision table with rewards in $ millions. $\begin{array}{r}\text { State of Nature }\\(\begin{array}{|c|c|c|c|}\hline\text { Decision Alternatives } & S_{1} & S_{2} & S_{3} \\\hline d_{1} & -1 & 2 & 8 \\\hline d_{2} & -3 & x & 5 \\\hline d_{3} & -0.5 & 0.75 & 1 \\\hline d_{4} & 0 & 0 & 0 \\\hline d_{5} & -1 & -1 & -1\\\hline\end{array}\end{array}$ If you are using the maximax criterion and decide d₁, then x is ______.

• A)at least 8
• B)more than 8
• C)at most 5
• D)less than 8
• E)at most 2

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Definitions:

Scientific Management

A management theory that applies scientific methods to analyze and optimize workflows and efficiency in the workplace.

Frederick W. Taylor

An American mechanical engineer who sought to improve industrial efficiency and is considered the father of scientific management.

Workplace

The physical or virtual location where people perform their job duties.

Social Organization

The structured arrangement of societal institutions and groups, shaping how members of a society interact and function together.