Use the Following Data to Answer Questions 88-100 -Refer to the Data on Expected Demand for Weston Gadgets,Inc

question 53

Multiple Choice

Use the following data to answer questions 88-100. $$\begin{array}{l} \quad \quad \quad \quad \quad \quad \quad \quad \text { Expected Demand for Weston Gadgets, Inc. }\\\begin{array} { | l | l | l | l | } \hline \text { Decision Alternative } & \text { Low 35\% } & \text { Medium 30\% } & \text { High 35\% } \\\hline \text { Outsource } & \$ 16.00 \text { million } & \$ 28.00 \text { million } & \$ 66.00 \text { million } \\\hline \text { Build capacity } & \$ 4.00 \text { million } & \$ 32.00 \text { million } & \$ 26.00 \text { million } \\\hline \text { Do nothing } & \$ 9.00 \text { million } & \$ 18.00 \text { million } & \$ 66.00 \text { million } \\\hline\end{array}\end{array}$$
-Refer to the data on Expected Demand for Weston Gadgets,Inc.Based on the Hurwicz criterion,what is the payoff for the option to do nothing if you used the coefficient of realism of 0.6?

• A)$46.00 million
• B)$20.80 million
• C)$43.20 million
• D)$33.20 million

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Definitions:

Desert Insects

Insects adapted to survive in desert environments with extreme conditions such as high temperature and low moisture.

Body Covering

The outer protective layer or surface of an organism, such as skin in humans, feathers in birds, or fur in mammals.

Conserving Water

The practice of using water efficiently to reduce unnecessary water usage and protect water resources.

Tropical Deserts

Arid regions located in tropical zones, characterized by extreme heat, minimal rainfall, and sparse vegetation.