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use, aid wilal aerhanve wil he select! The Lubricant is an expensive oil newsletter to which many oil giants subscribe, including Ken Brown (see Problem 3-17 for details). In the last issue, the letter described how the demand for oil products would be extremely high. Apparently, the American consumer will continue to use oil products even if the price of these products doubles. Indeed, one of the articles in the Lubricant states that the chance of a favorable market for oil products was 70%, while the chance of an unfavorable market was only 30%. Ken would lieves tha With a fa If the ma turn at al Allen est is 0.4, th probabil maximiz 3-19 (a) Deve (b) Wha like to use these probabilities in determining the best 3-23 In Probl decision. (a) What decision model should be used? (c) Ken believes that the $300,000 figure for the Sub the best about pa of Allen very ac fair, or could n (b) What is the optimal decision? 100 with a favorable market is too high. How much lower would this figure have to be for Ken to change his decision made in part (b)? Note: means the problem may be solved with QM for Windows means the problem may be solved with Excel QM: and means the problem may be solved with QM for Windo