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:

Neutrons

Subatomic particles found in the nucleus of an atom, having no electric charge and a mass slightly greater than that of protons.

Electrons

Subatomic particles with a negative electric charge, found orbiting the nucleus of atoms and playing a crucial role in chemical bonds.

Protons

Positively charged subatomic particles found in the nucleus of an atom, contributing to the atom's overall charge and mass.

Molecules

The smallest units of a chemical substance that can exist independently while retaining the properties of the substance.