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 (minimization problem).

States of Nature (Worker hours demanded)

Alternatives 10 hr total pay 20 hr total pay 30 hr total pay Worker 1 $1,000 $1,800 $2,400 Worker 2 $900 $1,800 $2,500 Worker 3 $950 $1,750 $2,550 (a) Which alternative is most optimistic? Why? (1 Point) (b) Which alternative is most pessimistic? Why? (1 Point) (c) Using the Hurwicz criterion with a coefficient of realism, = 0.70, what is the best alternative? Why? (1 Point) (d) Assume that 10 hours are demanded with 50% probability, 20 hours are demanded with 30% probability, and 30 hours are demanded with 20% probability. Using the Expected Opportunity Loss, what is the best alternative? Why? (2 Points) Answer text

QUANTITATIVE METHODS

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 (minimization problem). (a) Which alternative is most optimistic? Why? (1 Point) (b) Which alternative is most pessimistic? Why? (1 Point) (c) Using the Hurwicz criterion with a coefficient of realism, =0.70, what is the best alternative? Why? ( 1 Point) (d) Assume that 10 hours are demanded with 50% probability, 20 hours are demanded with 30% probability, and 30 hours are demanded with 20% probability. Using the Expected Opportunity Loss, what is the best alternative? Why? (2 Points)