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?
Definitions:
Physician
A medical professional who diagnoses and treats illnesses, provides preventive care, and advises patients on health maintenance.
Emergency Call
A phone call made to request immediate assistance from emergency services, such as police, fire, or medical teams.
Practitioner
A professional engaged in the practice of a particular occupation or profession, often within the healthcare sector.
Second Call
In emergency services, a subsequent notification for assistance or action after the initial call.
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