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[20 points] Charge Up is an independent electric charging station operator. Charge Up is considering to build electric charging stations along an interstate highway. The
[20 points] Charge Up is an independent electric charging station operator. Charge Up is considering to build electric charging stations along an interstate highway. The number of stations Charge Up is considering to build would depend on the market forecast. After a careful analysis of annual profit forecasts, Charge Up has developed the following table: For example, if Charge Up builds 2 charging stations and if there is a good market, Charge Up will realize a profit of $50,000. On the other hand, if the market is poor, Charge Up will suffer a loss of $30,000. But Charge Up's managers have always been a very optimistic decision makers. a. What type of decision is Charge Up facing? b. What decision criterion should the optimistic managers use? c. How many stations should Charge Up build? Why? d. If a pessimistic approach is used, what criterion should be used? e. How many stations should Charge Up build with pessimistic approach? Why
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