A.8 Leah Johnson, director of Urgent Care of Brookline, wants to increase capacity to provide low-cost flu

Question:

• A.8 Leah Johnson, director of Urgent Care of Brookline, wants to increase capacity to provide low-cost flu shots but must decide whether to do so by hiring another full-time nurse or by using part-time nurses. The following table shows the expected costs of the two options for three possible demand levels:

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a) Using expected value, what should Ms. Johnson do?

b) Draw an appropriate decision tree showing payoffs and probabilities.

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