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

question 32

Essay

An operations manager's staff has compiled the information below for four manufacturing alternatives (A,B,C,and
D)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.

a.Assuming a maximax strategy,which alternative would be chosen?
b.If maximin were used,which would be chosen?
c.If the states of nature were equally likely,which alternative should be chosen?

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Definitions:

Controversial

Causing disagreement or discussion, often because of differing opinions on a sensitive or decisive issue.

Persuasive Message

Communication intended to induce the listener or reader to believe or do something.

Persuasion

The communication of arguments and information intended to change another person’s attitudes.

Arguments

Exchanges of diverging or opposite views, often involving debate or conflict over a particular subject or idea.