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r example, if lan constructs a small station and the market is good, he will realize a profit is exercise contains only parts b, c, and d. Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be

r example, if lan constructs a small station and the market is good, he will realize a profit is exercise contains only parts b, c, and d. Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be

Practical Management Science
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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Even though independent gasoline stations have been having a difficult time, lan Langella has been thinking about starting his own independent gasoline station. lan's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, lan developed the following table: States of Nature Size of First Station Good Market Fair Market Poor Market $40,000 $90,000 $18,000 $27,000 - $8,000 - $22,000 Small Medium $105,000 $27,500 Large Very Large - $36,000 - $180,000 $320,000 $26,000 For example, if lan constructs a small station and the market is good, he will realize a profit of $40,000. This exercise contains only parts b, c, and d. b) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be
Transcribed Image Text:Even though independent gasoline stations have been having a difficult time, lan Langella has been thinking about starting his own independent gasoline station. lan's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, lan developed the following table: States of Nature Size of First Station Good Market Fair Market Poor Market $40,000 $90,000 $18,000 $27,000 - $8,000 - $22,000 Small Medium $105,000 $27,500 Large Very Large - $36,000 - $180,000 $320,000 $26,000 For example, if lan constructs a small station and the market is good, he will realize a profit of $40,000. This exercise contains only parts b, c, and d. b) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be
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