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(SHOW YOUR COMPLETE WORK) A company is considering four alternatives under different growth levels in demand. These four alternatives are: do nothing, expand small, expand
(SHOW YOUR COMPLETE WORK) A company is considering four alternatives under different growth levels in demand. These four alternatives are: do nothing, expand small, expand large, and build a new facility. Possible growth levels in demand are low, medium, high, or no change. The following table gives the net profit for each decision alternative under each possible growth level: a. Which decision alternative should the company select using the MAXIMAX approach? What is the corresponding profit? [4 points] b. Which decision alternative should the company select using the MAXIMIN approach? What is the corresponding profit? [4 points] c. Which decision alternative should the company select using the Laplace (or equally likely) approach? What is the corresponding profit? [10 points]
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