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A manager is deciding whether or not to build a small facility. Demand is uncertain and can be either at a high or low level.
A manager is deciding whether or not to build a small facility. Demand is uncertain and can be either at a high or low level. If the manager chooses a small facility and demand is low, the payoff is $100. If the manager chooses a small facility and the demand is high, the payoff is $300. On the other hand, if the manager chooses a large facility and demand is low, the payoff is -$200, but if demand is high, the payoff is $800. Develop the decision table and find the Maximax value?
100 | ||
800 | ||
- 200 | ||
300 |
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