The Operations Manager for a Local Bus Company Wants to Decide

question 115

Multiple Choice

The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new bus for his company. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, medium, or high, as follows:

If he uses the minimax regret criterion, which size bus will he decide to purchase?

• A)small
• B)medium
• C)large
• D)either small or medium
• E)either medium or large

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Definitions:

Polynesian Seafarers

Refers to the skilled navigators and sailors of the Polynesian islands, who explored and settled the vast Pacific Ocean using traditional wayfinding techniques and celestial navigation.

Rapanui

The indigenous Polynesian people of Easter Island in the southeastern Pacific Ocean, known for their history and monumental statues.

High Altitude

Regions of the Earth notably above sea level, affecting climate, human activity, and biological adaptations.

Barrel-Chested

Describing a person with a broad and rounded chest, often implying strength or robust health.