The Operations Manager for a Local Bus Company Wants to Decide

question 108

Multiple Choice

The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new bus for his company. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, medium, or high, as follows: $$\begin{array} { | l | l | l | l | } \hline \text { Bus } & { \text { DEMAND } } \\\hline & \text { LOW } & \text { MEDIUM } & \text { HIGH } \\ \hline \text { Small } & 50 & 60 & 70 \\\hline \text { Medium } & 40 & 80 & 90 \\\hline \text { Large } & 20 & 50 & 120 \\\hline\end{array}$$ If he uses the maximin criterion, which size bus will he decide to purchase?

• A) small
• B) medium
• C) large
• D) either small or medium
• E) either medium or large

---

Definitions:

Workers' Compensation Benefits

Payments and benefits provided to employees who are injured or become ill as a direct result of their job.

Eligibility Requirements

Criteria that individuals must meet to qualify for participation in a program or to receive certain benefits.

Retirement Benefits

Financial support or services workers receive upon retiring, including pensions, health insurance, and other forms of retirement income.

Unemployment Benefits

Financial payments given to individuals who have lost their jobs until they find new employment.