Below is a decision table for Gregor’s Tennis School. Director Gregor Anderson is considering expanding his school to accommodate the potential increased interest in youth tennis lessons, camps and teams. The decision table below describes his situation.Decision Table State of NatureAlternativesHigh DemandModerate DemandLow DemandAdd a new building30,00030,0009,5009,500−35,000-35,000Extend hours for existing building25,00025,0004,2004,200−4,000-4,000Do Nothing000000 Step 2 of 3: What is the estimated payoff for adding a new building during moderate demand?

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Business

Operations Management

What is the estimated payoff for adding a new building during moderate demand?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 12P

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	State of Nature
Add a new building	30,00030,000	9,5009,500	−35,000-35,000
Extend hours for existing building	25,00025,000	4,2004,200	−4,000-4,000
Do Nothing	00	00	00

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	State of Nature
Alternatives	High Demand	Moderate Demand	Low Demand
Add a new building	30,00030,000	9,5009,500	−35,000-35,000
Extend hours for existing building	25,00025,000	4,2004,200	−4,000-4,000
Do Nothing	00	00	00