Refer to the data on Expected Demand for Acme Widgets. For the various demand scenarios and their associated probabilities, which of the three decision alternatives has the maximum expected value?





A. outsource, with an expected value of $20.95 million

B. build capacity, with an expected value of $23.70 million

C. do nothing, with an expected value of $40.50 million

D. outsource, with an expected value of $31.60 million


C. do nothing, with an expected value of $40.50 million

Business

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