Wired & Plugged specializes in manufacturing modern electronic components. It also builds equipment that produces the components. The marketing and production directors advised the president about a proposed manufacturing facility in the form of a payoff table as shown. Construct an Opportunity Loss (Regret) table. What decision should be made under Maximax Regret? Profits($)DecisionStrongMarkedFair MarketPoor MarketLarge-sized450,000120,000-310,000facilityMedium-sized2500,000250,000-150,000facilitySmall- sized200,000100,000-20,000facilityNo facility

Opportunity Loss Table: The opportunity loss is calculated by the difference between the highest…

Answered: Wired & Plugged specializes in…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Wired & Plugged specializes in manufacturing modern electronic components. It also builds equipment that produces the components. The marketing and production directors advised the president about a proposed manufacturing facility in the form of a payoff table as shown.

Construct an Opportunity Loss (Regret) table. What decision should be made under Maximax Regret?

Profits($)
Decision
Strong
Marked
Fair Market
Poor Market
Large-sized
450,000
120,000
-310,000
facility
Medium-sized
2500,000
250,000
-150,000
facility
Small- sized
200,000
100,000
-20,000
facility
No facility

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