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C O B https://imathas.humber.ca/assess2/?cid=235&aid=6302#/skip/4 The owner of the Humber North Fashion Company must decide among mass producing 100,000 turtle neck sweaters, designing and producing 10,000

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C O B https://imathas.humber.ca/assess2/?cid=235&aid=6302#/skip/4 The owner of the Humber North Fashion Company must decide among mass producing 100,000 turtle neck sweaters, designing and producing 10,000 new gala dresses, or leasing their production facilities to another company. The profit that will result from each alternative will be determined by whether material costs remain stable, increase moderately, or increase significantly. In the payoff table below the estimated profits/losses are given in $thousands. Material Costs Moderate Significant Stable Increase Increase Turtle 1800 400 -2450 Necks Gala Decision 1930 830 -480 Dresses Leasing 600 950 750 Determine the best decision using the Hurwicz criterion with a = 0.1. Decision: Leasing based on 635 = max(-2025,-239,635) Decision: Stable based on 733 = max(733,455,-2130) O Decision: Gala Dresses based on 1689 = max(1375,1689,915) Decision: Turtle Necks based on -2025 = min(-2025,-239,735)

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