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

---

Definitions:

Social Facilitation

The enhancement of performance observed when an individual performs in the presence of others, compared to when alone.

Köhler Effect

A phenomenon observed in groups where less capable members perform better when working collectively than they would on their own, inspired by the work of Gestalt psychologist Wolfgang Köhler.

Inferior Member

In a group setting, it refers to a member perceived or deemed to be of lesser skill, contribution, or value compared to others within the group.

Group Productivity

The measure of the output or performance level of a group working together towards common objectives.