An Operations Manager's Staff Has Compiled the Information Below for Four

question 52

Essay

An operations manager's staff has compiled the information below for four manufacturing alternatives (E,F,G,and H)that vary by production technology and the capacity of the machinery.All choices enable the same level of total production and have the same lifetime.The four states of nature represent four levels of consumer acceptance of the firm's products.Values in the table are net present value of future profits in millions of dollars.Forecasts indicate that there is a 0.1 probability of acceptance level 1,0.2 chance of acceptance level 2,0.4 chance of acceptance level 3,and 0.3 change of acceptance level 4. Using the criterion of expected monetary value,which production alternative should be chosen?

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Definitions:

Oral Report

A spoken presentation of information or findings to an audience or group.

Organizing Content

The process of structuring and arranging information in a logical and coherent manner for better understanding and navigation.

Verbal Cue

Signals or words used in communication that indicate the nature of the conversation or guide the listener's understanding.

Inflection

A change in the form of a word to express different grammatical functions or attributes such as tense, mood, voice, aspect, person, number, gender, and case.