East West Distributing is in the process of trying to determine where they should schedule next year's production of a popular line of kitchen utensils that they distribute. Manufacturers form in four different countries have submitted bids to East West. However, a pending trade in bill in Congress will greatly affect the cost to East West due to proposed tariffs, favorable trading status, etc. After a careful analysis, East West has determined the following cost breakdown for the four manufacturers (in $1,000's) on whether or not the trade bill passes: 

Bill Passes country A 260, country B 320, country C 240, country D 275 

Bill Fails country A 210, country B 160, country C 240, country D 210 

a. If East West estimates that there is a 40% chance of the bill passing, which country should they choose for manufacturing? 

b. over what range of values for the "bill passing" will the solution in part (a) remain optimal?

Answer rating: 100% (QA)

Lets analyze the situation for East West Distributing a If East West estimates that there is a 40 ch... View the full answer