A Small Parts Manufacturer Has Just Engineered a New Product

question 59

Multiple Choice

A small parts manufacturer has just engineered a new product for the automotive industry. In order to produce the part the company can expand existing facilities, acquire a competitor, or subcontract production. The company believes the product will either experience high market demand or low market demand. The following payoff table describes the company's decision situation: The best decision for the manufacturer using the minimax regret decision criterion is to

• A) expand facilities.
• B) acquire competitor.
• C) subcontract production.
• D) select high demand.

---

Definitions:

Xanax

A prescription medication, generically known as alprazolam, used to treat anxiety and panic disorders.

Ativan

A medication primarily used to treat anxiety disorders, known generically as lorazepam.

Double-blind Studies

Experimental procedures in which neither the participants nor the researchers know who is receiving a particular treatment, used to eliminate bias in research results.

Placebo Effect

The placebo effect refers to the phenomenon where individuals experience a perceived improvement in their condition or symptoms after receiving a treatment that has no therapeutic effect.