Question
Louis Hooper, manager of the Tahoe City street maintenance department, must decide about increasing the snow removal equipment. He has identified three mutually exclusive states
Louis Hooper, manager of the Tahoe City street maintenance department, must decide about increasing the snow removal equipment. He has identified three mutually exclusive states of weather: no snow, light snow, and heavy snow. He is considering three courses of action: maintain present capacity; contract now for the services of one additional remover at a cost of $10,000; contract now for the services of two additional removers at a cost of $18,000. If he maintains present capacity and gets light snow or heavy snow, the city will have to buy services from the state at a cost of $12,000 and $27,000, respectively. If he contracts now for the services of one additional remover and the city gets hit with heavy snow, the city will have to purchase $15,000 worth of service from the state. Create a payoff table for Hooper's problem.
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