A Small Parts Manufacturer Has Just Engineered a New Product

question 76

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 Hurwicz decision criterion with a coefficient of optimism equal to 0.3 is to

• A) expand facilities.
• B) acquire competitor.
• C) subcontract production.
• D) make no decision.

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Definitions:

Entrepreneurial Skills

Abilities essential for starting, developing, and managing new business ventures effectively and efficiently.

Virtual Interviews

Job interviews conducted over video conferencing platforms, allowing participants to engage remotely.

Phone Interviews

Phone interviews are a method of screening or interviewing candidates for a position or gathering information over the telephone.

Stress Interview

A type of job interview designed to put the applicant under pressure to see how they handle stress.