Question
A manager needs to hire short-term employees to meet production demands. The manager would like to hire one of three possible short-term workers. STATES OF
A manager needs to hire short-term employees to meet production demands. The manager would like to hire one of three possible short-term workers.
| STATES OF NATURE | |||
| (WORKER HOURS DEMAND | |||
| ALTERNATIVES | 10 hours of full payment | 20 hours of full payment | 30 hours of full payment |
| worker 1 | 1000 | 1800 | 2400 |
| worker 2 | 900 | 1800 | 2500 |
| worker 3 | 950 | 1750 | 2550 |
(a) Which alternative is the most optimistic?
(b) Which alternative is more pessimistic?
(c) Using the Hurwicz criterion with a coefficient of realism, α = 0.70, what is the best alternative?
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a A very optimistic decision criterion Decision maker assumes that the most favorable state of natur...
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Quantitative Methods For Business
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
11th Edition
978-0324651812, 324651813, 978-0324651751
