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A machine shop has to decide whether to repair, refurbish, or replace a machine (or do nothing).The estimated monetary returns are given below for different
A machine shop has to decide whether to repair, refurbish, or replace a machine (or do nothing).The estimated monetary returns are given below for different possibilities of future demand (low, medium, or high).
0.3 | 0.5 | 0.2 | |
Low | Medium | High | |
Do nothing | 2 | 2 | 2 |
Repair | 3 | 4 | 5 |
Refurbish | 4 | 10 | 12 |
Replace | -2 | 8 | 20 |
The first row indicates the probability of the possible future demand situation.
As an example, if repair is carried out, and the future demand is high, the monetary return would be 5.
Among the four actions, what is the highest value of the expected monetary return?
(Provide one decimal place)
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