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An IHOP franchisee must consider closing up to three of her least profitable locations. She meets with two consultants to discuss potential plans. The first
An IHOP franchisee must consider closing up to three of her least profitable locations. She meets with two consultants to discuss potential plans. The first consultant offers two plans. Plan A will result in losing two locations with certainty. Plan B has a two-in-three chance of losing all locations but a one-in-three chance of losing no locations. The second consultant also offers two plans. Plan C keeps one location with certainty. Plan D has a one-in-three chance of saving all three locaitons but a two-in-three chance of saving no locations. If the franchisee applies the cost-benefit-principle, which combination of plans reflects a consistent decision Plan B and Plan A Plan C and Plan B Plan D and Plan A Plan C and Plan A
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