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* 00 R 品 Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering whether he should opt for a subcompact, compact, or full-size pickup truck. The smaller truck would have better fuel economy, but would sacrifice capacity and some durability. A friend at the Bureau of Economic Research told him that there is a 30% chance of lower gas prices in his area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices will stay roughly unchanged. Based on this information, Miles has developed a decision table that indicates the profit amount he would end up with after a year for each combination of truck and gas prices. States of Nature Lower gas Gas prices Higher gas Alternatives prices unchanged prices Subcompact 000ʻ9 000'6 000ʻ Compact 15,000 Full size 000'6, 000'9 gooʻ'r Probability 0.5 0.2 Which type of truck should Miles select based on Maximin Criterion? MacBook Air 000 000 DD F2 F4 F5 F7 F8 23 5. 7. 4. 9. * 00 T み3 prices unchanged prices Subcompact 000' 000 000' Compact 000'S 0002 000'0 Full size 000'6T 000'9 000' Probability 0.3 0.5 0.2 Which type of truck should Miles select based on Maximin Criterion? Compact O Subcompact None O Full size Previous Next MacBook Air 000 000 F4 DD F7 F2 F3 F5 23 ) 2$ 9. 7. Y H.

* 00 R 品 Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering whether he should opt for a subcompact, compact, or full-size pickup truck. The smaller truck would have better fuel economy, but would sacrifice capacity and some durability. A friend at the Bureau of Economic Research told him that there is a 30% chance of lower gas prices in his area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices will stay roughly unchanged. Based on this information, Miles has developed a decision table that indicates the profit amount he would end up with after a year for each combination of truck and gas prices. States of Nature Lower gas Gas prices Higher gas Alternatives prices unchanged prices Subcompact 000ʻ9 000'6 000ʻ Compact 15,000 Full size 000'6, 000'9 gooʻ'r Probability 0.5 0.2 Which type of truck should Miles select based on Maximin Criterion? MacBook Air 000 000 DD F2 F4 F5 F7 F8 23 5. 7. 4. 9. * 00 T み3 prices unchanged prices Subcompact 000' 000 000' Compact 000'S 0002 000'0 Full size 000'6T 000'9 000' Probability 0.3 0.5 0.2 Which type of truck should Miles select based on Maximin Criterion? Compact O Subcompact None O Full size Previous Next MacBook Air 000 000 F4 DD F7 F2 F3 F5 23 ) 2$ 9. 7. Y H.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 42P
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* 00 R 品 Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering whether he should opt for a subcompact, compact, or full-size pickup truck. The smaller truck would have better fuel economy, but would sacrifice capacity and some durability. A friend at the Bureau of Economic Research told him that there is a 30% chance of lower gas prices in his area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices will stay roughly unchanged. Based on this information, Miles has developed a decision table that indicates the profit amount he would end up with after a year for each combination of truck and gas prices. States of Nature Lower gas Gas prices Higher gas Alternatives prices unchanged prices Subcompact 000ʻ9 000'6 000ʻ Compact 15,000 Full size 000'6, 000'9 gooʻ'r Probability 0.5 0.2 Which type of truck should Miles select based on Maximin Criterion? MacBook Air 000 000 DD F2 F4 F5 F7 F8 23 5. 7. 4. 9.
Transcribed Image Text:* 00 R 品 Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering whether he should opt for a subcompact, compact, or full-size pickup truck. The smaller truck would have better fuel economy, but would sacrifice capacity and some durability. A friend at the Bureau of Economic Research told him that there is a 30% chance of lower gas prices in his area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices will stay roughly unchanged. Based on this information, Miles has developed a decision table that indicates the profit amount he would end up with after a year for each combination of truck and gas prices. States of Nature Lower gas Gas prices Higher gas Alternatives prices unchanged prices Subcompact 000ʻ9 000'6 000ʻ Compact 15,000 Full size 000'6, 000'9 gooʻ'r Probability 0.5 0.2 Which type of truck should Miles select based on Maximin Criterion? MacBook Air 000 000 DD F2 F4 F5 F7 F8 23 5. 7. 4. 9.
* 00 T み3 prices unchanged prices Subcompact 000' 000 000' Compact 000'S 0002 000'0 Full size 000'6T 000'9 000' Probability 0.3 0.5 0.2 Which type of truck should Miles select based on Maximin Criterion? Compact O Subcompact None O Full size Previous Next MacBook Air 000 000 F4 DD F7 F2 F3 F5 23 ) 2$ 9. 7. Y H.
Transcribed Image Text:* 00 T み3 prices unchanged prices Subcompact 000' 000 000' Compact 000'S 0002 000'0 Full size 000'6T 000'9 000' Probability 0.3 0.5 0.2 Which type of truck should Miles select based on Maximin Criterion? Compact O Subcompact None O Full size Previous Next MacBook Air 000 000 F4 DD F7 F2 F3 F5 23 ) 2$ 9. 7. Y H.
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