The Quality Control Manager for the NKA Inc -What Alternative Action Should Be Selected According to Expected Monetary

question 79

Essay

The quality control manager for the NKA Inc.must decide whether to accept (alternative 1),further analyze (alternative 2),or reject (alternative 3)the shipment (lot)of incoming material.The historical data indicates that there is 30% chance that the lot is poor quality (S₁),50% chance that the lot is fair quality (S₂),and 20% chance that the lot is good quality (S₃).Assume the following payoff table is available.The values in the payoff table are in thousands of dollars. $$\begin{array} { l c c c } & { \text { States of Nature } } \\\text { Decision } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } & \mathrm {~S} _ { 3 } \\\text { Accept } & 20 & 30 & 90 \\\text { Further analyze } & 60 & 70 & 15 \\\text { Reject } & 80 & 50 & 30\end{array}$$
-What alternative action should be selected according to expected monetary value criterion?

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Definitions:

Existential Counseling

A form of psychotherapy focusing on self-awareness and confronting existential dilemmas and questions of meaning, choice, freedom, and mortality.

Presence

The state or fact of existing, occurring, or being present in a place or thing.

Paradoxical Intention

A therapeutic technique where a client is encouraged to engage in or exaggerate a feared behavior or thought to lessen its power and relieve anxiety.

Fear of Public Places

Also known as Agoraphobia, it is an anxiety disorder characterized by an intense fear and avoidance of places or situations where escape might be difficult or help might not be available.