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

question 95

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.For the various demand scenarios,if you applied the Laplace criterion,what is the payoff for the "build capacity" option?

• A)$36.67 million
• B)$20.67 million
• C)$33.20 million
• D)$41.55 million

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Definitions:

Presbyopia

An age-related condition in which the eye's lens loses its ability to focus, making it difficult to see objects up close.

Iritis

Inflammation of the iris, the colored part of the eye, which can cause pain, light sensitivity, and vision problems.

Color Blindness

A deficiency in the way someone sees color, making it difficult to distinguish between certain colors or shades.

Contrast Sensitivity

The ability to distinguish between variations in light and dark, a critical aspect of vision that affects how well one can perceive fine distinctions in brightness or textures.