5. The local hiring manager Sukhwa from Target must decide whether to hire 1, 2, or 3 workers. He estimates that net revenues (in thousands) will vary with how well Hilo citizens comply with the new store COVID-19 policy. If they comply with the new policy, then hiring more workers result in excess costs. Low Medium High # of Workers Compliance Compliance 50 Compliance 50 1 50 2 100 60 20 3 150 70 -10 a. As you already know Sukhwa is an extremely optimistic person, how many new workers will he hire? b. Today Sukhwa had an argument with his mom and is feeling extremely pessimistic, what decision will he make? с. If Sukhwa chooses to minimize his maximum regret, how many new workers will he hire? d. If the manager is neither optimistic nor pessimistic (50:50), what decision will he make? e. If he thinks the chances of low, medium, and high compliance are 20%, 30%, and 50%, respectively, what are the expected net revenues for the number of workers he will decide to hire? f. If he thinks the chances of low, medium, and high compliance are 20%, 30%, and 50%, respectively, what is the expected value of perfect information?

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...
icon
Related questions
Question
100%
5. The local hiring manager Sukhwa from Target must decide whether to hire 1, 2, or 3
workers. He estimates that net revenues (in thousands) will vary with how well Hilo
citizens comply with the new store COVID-19 policy. If they comply with the new policy,
then hiring more workers result in excess costs.
Low
Medium
High
# of Workers
Compliance
Compliance
50
Compliance
50
1
50
2
100
60
20
3
150
70
-10
a. As you already know Sukhwa is an extremely optimistic person, how many new
workers will he hire?
b. Today Sukhwa had an argument with his mom and is feeling extremely pessimistic,
what decision will he make?
с.
If Sukhwa chooses to minimize his maximum regret, how many new workers will
he hire?
d. If the manager is neither optimistic nor pessimistic (50:50), what decision will he
make?
e. If he thinks the chances of low, medium, and high compliance are 20%, 30%, and
50%, respectively, what are the expected net revenues for the number of workers he
will decide to hire?
f. If he thinks the chances of low, medium, and high compliance are 20%, 30%, and
50%, respectively, what is the expected value of perfect information?
Transcribed Image Text:5. The local hiring manager Sukhwa from Target must decide whether to hire 1, 2, or 3 workers. He estimates that net revenues (in thousands) will vary with how well Hilo citizens comply with the new store COVID-19 policy. If they comply with the new policy, then hiring more workers result in excess costs. Low Medium High # of Workers Compliance Compliance 50 Compliance 50 1 50 2 100 60 20 3 150 70 -10 a. As you already know Sukhwa is an extremely optimistic person, how many new workers will he hire? b. Today Sukhwa had an argument with his mom and is feeling extremely pessimistic, what decision will he make? с. If Sukhwa chooses to minimize his maximum regret, how many new workers will he hire? d. If the manager is neither optimistic nor pessimistic (50:50), what decision will he make? e. If he thinks the chances of low, medium, and high compliance are 20%, 30%, and 50%, respectively, what are the expected net revenues for the number of workers he will decide to hire? f. If he thinks the chances of low, medium, and high compliance are 20%, 30%, and 50%, respectively, what is the expected value of perfect information?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.