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

question 11

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 build 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:

Risks

The potential for losing something of value or the possibility of an undesirable outcome.

Unintended Consequences

Outcomes that are not the ones foreseen and intended by a purposeful action.

Health Services

Organized provisions by public or private entities to maintain, improve, or manage the health and wellbeing of individuals or communities.

ADHD

Attention-Deficit/Hyperactivity Disorder, a neurodevelopmental disorder characterized by patterns of inattention, hyperactivity, and impulsivity that are disruptive and inappropriate for the individual's developmental level.