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Caselet # 1: ABC Construction Company is going to decide whether they are going to expand their business, build an additional facility, or subcontract a partner company. The research and development department forecasted the following payoff values which are summarized in the table below. The values are expressed as GAINS and alpha = 0.6. Come up with a decision using the different criteria under conditions of uncertainty: Decision Alternatives States of Nature Expand P500,000 P250,000 -P250,000 -P450,000 Subcontract P300,000 P150,000 -P10,000 -P100,000 Build High Moderate P700,000 P300,000 -P400,000 -P800,000 Low Failure

Caselet # 1: ABC Construction Company is going to decide whether they are going to expand their business, build an additional facility, or subcontract a partner company. The research and development department forecasted the following payoff values which are summarized in the table below. The values are expressed as GAINS and alpha = 0.6. Come up with a decision using the different criteria under conditions of uncertainty: Decision Alternatives States of Nature Expand P500,000 P250,000 -P250,000 -P450,000 Subcontract P300,000 P150,000 -P10,000 -P100,000 Build High Moderate P700,000 P300,000 -P400,000 -P800,000 Low Failure

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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ABC Construction Company is going to decide whether they are going to expand their business, build an additional facility, or subcontract a partner company. The research and development department forecasted the following payoff values which are summarized in the table below. The values are expressed as GAINS and alpha = 0.6. Come up with a decision using the different criteria under conditions of uncertainty:

Caselet # 1: ABC Construction Company is going to decide whether they are going to expand their business, build an additional facility, or subcontract a partner company. The research and development department forecasted the following payoff values which are summarized in the table below. The values are expressed as GAINS and alpha = 0.6. Come up with a decision using the different criteria under conditions of uncertainty: Decision Alternatives States of Nature Expand P500,000 P250,000 -P250,000 -P450,000 Build P700,000 P300,000 -P400,000 -P800,000 Subcontract High Moderate P300,000 P150,000 -P10,000 -P100,000 Low Failure
Transcribed Image Text:Caselet # 1: ABC Construction Company is going to decide whether they are going to expand their business, build an additional facility, or subcontract a partner company. The research and development department forecasted the following payoff values which are summarized in the table below. The values are expressed as GAINS and alpha = 0.6. Come up with a decision using the different criteria under conditions of uncertainty: Decision Alternatives States of Nature Expand P500,000 P250,000 -P250,000 -P450,000 Build P700,000 P300,000 -P400,000 -P800,000 Subcontract High Moderate P300,000 P150,000 -P10,000 -P100,000 Low Failure
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