The Construction Manager for Acme Construction,Inc

question 63

Essay

The construction manager for Acme Construction,Inc.must decide whether to build single family homes,apartments,or condominiums.This is not a product-mix problem,but an all-or nothing decision.He will hire workers and rent equipment appropriate for one action only.He estimates annual profits (in thousands of dollars)will vary with population trends as follows:
a.If he uses the maximin criterion,which type of dwellings will he choose to build? Show your supporting calculations.
b.If he uses the equally likely criterion,which kind of dwellings will he choose to build? Show your supporting calculations.
c.If the construction manager were an optimist,what criterion would he choose? What would be the choice of dwelling for that criterion? Show your supporting calculations.

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Definitions:

Public

Concerning or affecting the community or the people; pertaining to the society at large.

Courtrooms

Designated spaces where judicial cases are heard and decided by a judge or jury, involving legal debates, evidence presentation, and judgments.

Civil Action

A lawsuit brought to enforce, redress, or protect private rights, as opposed to criminal matters.

Jurisdiction

The authority given to a legal body to administer justice within a defined field of responsibility, geographically or subjectively.