XYZ is a paint product manufacturer, and one of the plants is experiencing a substantial increase in demand. The future demand for the products could be low, medium, or high, with probabilities estimated to be 25%, 50%, and 30%, respectively. The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand. Given the following payoff matrix, determine which option has the lowest expected regret. The company should ______.
a. subcontract additional facility.
b. build a new plant.
c. do nothing.
d. choose a new alternative
c. do nothing.
You might also like to view...
People want to be able to identify leaders as those who are leading the way in our society. This is an example of what strength of the approach?
A. century of research B. intuitive appeal C. benchmarking traits D. definitive list of traits
In today's labor relations environment:
A. Sweatshops and forms of modern slavery are nonexistent in the United States. B. Workers are assured of a wage necessary to support a family. C. There is an increasing number of employers violating labor standards. D. Workers are generally fired only for good reasons.
Sysco developed a work climate/employee-engagement survey built around the:
A. organizational mission. B. training and development. C. organizational goals. D. 5-STAR principles.
Ryan is a 25% partner in the ROCC Partnership. At the beginning of the tax year, his basis in the partnership interest was $90,000, including his share of partnership liabilities. During the current year, ROCC reported net ordinary income of $100,000. In addition, ROCC distributed $10,000 to each of the partners ($40,000 total). At the end of the year, Ryan’s share of partnership liabilities increased by $10,000. His basis in the partnership interest at the end of the year is:
A. $90,000. B. $100,000. C. $115,000. D. $125,000. E. $190,000.