The Local Operations Manager for the Internal Revenue Service Must

question 12

Multiple Choice

The local operations manager for the Internal Revenue Service must decide whether to hire one, two, or three temporary tax examiners for the upcoming tax season. She estimates that net revenues (in thousands of dollars) will vary with how well taxpayers comply with the new tax code just passed by Congress, as follows: $$\begin{array} { | l | l | l | l | } \hline { \begin{array} { l } \text { NUMBER } \\\text { OF } \\\text { EXAMINERS }\end{array} } & { \text { COMPLIANCE } } \\\hline & \text { LOW } & \text { NORMAL } & \text { HIGH } \\\hline \text { One } & 50 & 50 & 50 \\\hline \text { Two } & 100 & 60 & 20 \\\hline \text { Three } & 150 & 70 & - 10 \\\hline\end{array}$$ If she uses the minimax regret criterion, how many new examiners will she decide to hire?

• A) one
• B) two
• C) three
• D) either one or two
• E) either two or three

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Definitions:

Jane Goodall

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