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a manager must decide whether to accept further analyze or reject an incoming shipment of microchips A manager must decide whether to accept, further analyze,
a manager must decide whether to accept further analyze or reject an incoming shipment of microchips A manager must decide whether to accept, further analyze, or reject an incoming shipment (lot) of microchips. The historical data indicate that there is a 26% chance that the lot is poor quality (S), a 40% chance that the lot is fair quality (S2), and a 34% chance that the lot is good quality (53). The corresponding profits (in thousands of dollars) are shown in the following table: States of Nature Decision S1 S2 S3 Accept 25 40 105 Further analyze 60 75 30 Reject 70 65 40 Suggestion: Draw a decision tree. Calculate the expected monetary value for "Reject": EMV Reject (For EMV, show exact value.) What is the best decision according to the expected monetary value criterion
a manager must decide whether to accept further analyze or reject an incoming shipment of microchips
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