A Small Parts Manufacturer Has Just Engineered a New Product

question 26

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 equal likelihood criterion is to

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

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Definitions:

Spontaneous Abortion

The natural ending of a pregnancy before the fetus is capable of surviving outside the uterus, also known as miscarriage.

Human Genome

The complete set of nucleic acid sequences for humans, encoded as DNA within the 23 chromosome pairs in cell nuclei and in a small DNA molecule found within individual mitochondria.

Genes

are units of hereditary information consisting of DNA sequences that code for proteins or functional RNA molecules.

Human Genome Project

An international scientific research project aimed at mapping and understanding all the genes of the human species.