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The country and consulting agency are rather uncertain about the economy and are considering whether to hire full-time or part-time employees to staff the new
The country and consulting agency are rather uncertain about the economy and are considering whether to hire full-time or part-time employees to staff the new water/wastewater treatment facility. Additionally they are concerned about population demand varying from original estimates. After further research, the consulting group considers these uncertainties and provides the following expected costs and probabilities of different alternatives using three potential demands as shown in this table: States of Nature Alternatives Low Demand (15,000/year) Medium Demand (30,000/year) High Demand (45,000/year) Hire Full-time 55,000 75,000 95,000 Hire Part-time 50,000 80,000 95,000 Probabilities .30 .45 .25 Using the expected monetary value or expected profit, what should the country do? Question 6 options: Hire Part-time with EMV (or EP) $74,750 Hire Full-time with EMV (or EP) $74,000 Hire Full-time with EMV (or EP) $66,000 Hire Part-time with EMV (or EP) $82,000
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