Trey Leeman,Operations Manager at National Consumers,Inc

question 20

Multiple Choice

Trey Leeman,Operations Manager at National Consumers,Inc.(NCI) ,is evaluating alternatives for increasing capacity at NCI's Fountain Hill plant.He has identified four alternatives,and has constructed the following payoff table which shows payoffs (in $1,000,000's) for the three possible levels of market demand. If Trey uses the Hurwicz criterion with alpha = 0.4,the appropriate alternative would be: _____________.

• A) Lease New Equipment
• B) Purchase New Equipment
• C) Add Third Shift
• D) Do Nothing
• E) Do everything

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any need for learning.

Cognitive Perspective

An approach in psychology that emphasizes internal mental processes as the key to understanding human behavior.

Mentally Anticipate

The act of forecasting or predicting future events or reactions with the mind.

Behavior Modeling

A teaching method in which the desired behavior is demonstrated and learners are then guided to imitate the behavior.