Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 1 : Payoff Matrix ( 2 . 5 points ) This problem looks at limiting the costs of a decision. The method is basically

Problem 1: Payoff Matrix (2.5 points)
This problem looks at limiting the costs of a decision. The method is basically the same as for the example in the lecture, but the answers will be different because lower outcomes are favored. In this problem, an engineering firm is working on a project and wants to keep its data safe from computer viruses. The project is expected to take 30 days to complete. Any computer virus that destroys the data and will result in a $50,000 loss. The project manager has three choices for protecting the companys data:
1. Take no action, which will obviously not cost any money.
2. Hire an IT worker at a cost of $12 per hour (minimum) for eight hours per day. This worker will ensure the safety of the data against potential "ordinary" viruses.
3. Purchase a safety system for $5,000, which will download all the data to a secure location and ensure its safety against any type of virus.
The project manager has determined that there is a 70% chance that there will be no obstructive virus during the project, a 25% chance that an "ordinary" virus could affect the project, and a 5% chance that a "super" virus could affect the project.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these General Management questions