Reconsider Prob. 17.6-10. The total compensation for the new employee would be $8 per hour, which is just half that for the cashier. It is estimated that the grocery store incurs lost profit due to lost future business of $0.08 for each minute that each customer has to wait (including service time). The manager now wants to determine on an expected total cost basis whether it would be worthwhile to hire the new person.
(a) Which decision model presented in Sec. 26.4 applies to this problem? Why?
(b) Use this model to determine whether to continue the status quo or to adopt the proposal.