4. A plant manager considers the operational cost per hour of five machine alternatives. The cost per hour is sensitive to three potential weather conditions: cold, mild, and warm. The following table represents the operations cost per hour for each alternative- state of nature combination: States of Nature Weather related cost per hour Alternatives Cold cost/day Mild cost/day Warm cost/day Machine 1 Machine 2 Machine 3 Machine 4 Machine 5 $50 $45| $40 $60| $45 $40 $42 $35 $25 $40 $45 $47 $54 $48 $45
4. A plant manager considers the operational cost per hour of five machine alternatives. The cost per hour is sensitive to three potential weather conditions: cold, mild, and warm. The following table represents the operations cost per hour for each alternative- state of nature combination: States of Nature Weather related cost per hour Alternatives Cold cost/day Mild cost/day Warm cost/day Machine 1 Machine 2 Machine 3 Machine 4 Machine 5 $50 $45| $40 $60| $45 $40 $42 $35 $25 $40 $45 $47 $54 $48 $45
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:4. A plant manager considers the operational cost per hour of five machine alternatives.
The cost per hour is sensitive to three potential weather conditions: cold, mild, and
warm. The following table represents the operations cost per hour for each alternative-
state of nature combination:
States of Nature
Weather related cost per hour
Alternatives Cold cost/day Mild cost/day Warm cost/day
Machine 1
Machine 2
Machine 3
Machine 4
Machine 5
$50
$45
$40
$60
$45
$40
$42
$35
$25
$40
$45
$47
$54
$48
$45
Transcribed Image Text:Using the equally likely criterion, which alternative is best? 3
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