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0 States of Nature Very Favorable Average Unfavorable Alternatives Market Market Market Build new plant $250,000 $180,000 $200,000 Subcontract $270,000 $185,000 -$220,000 Overtime $100.000 $50,000

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0 States of Nature Very Favorable Average Unfavorable Alternatives Market Market Market Build new plant $250,000 $180,000 $200,000 Subcontract $270,000 $185,000 -$220,000 Overtime $100.000 $50,000 - $12,000 Do Nothing a) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be Subcontract The value of the return under this decision is $

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