Use the Following Data to Answer Questions 77-87

question 78

Multiple Choice

Use the following data to answer questions 77-87.
-Refer to the data on Expected Demand for Acme Widgets.For the various demand scenarios and their associated probabilities,which of the three decision alternatives has the maximum expected value?

• A)Outsource,with an expected value of $20.95 million
• B)Build capacity,with an expected value of $23.70 million
• C)Do nothing,with an expected value of $40.50 million
• D)Outsource,with an expected value of $31.60 million

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Definitions:

Collateral Contract

A separate contractual obligation that can stand alone, independent of the written contract.

Inferred Trust

A trust implied by law to work out justice between the parties, based on certain circumstances or conduct, as opposed to being established by explicit words.

Vicarious Performance

Performance by another designated person of the obligations under a contract rather than the actual contracting party.

Qualified Person

An individual who possesses the necessary education, experience, and credentials to perform a specific job or task.