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The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary
The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. State of nature (Degree of Compliance) Low Medium High Decision (strategy) Number of workers 1 2 3 50 100 150 50 60 70 50 20 -10 1. If the manager uses the minimax regret approach, how many new workers will he hire? 2. If the manager is optimistic, how many new workers will he hire? 3. If the investor is conservative, how many new workers will he hire? The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. State of nature (Degree of Compliance) Low Medium High Decision (strategy) Number of workers 1 2 3 50 100 150 50 60 70 50 20 -10 1. If the manager uses the minimax regret approach, how many new workers will he hire? 2. If the manager is optimistic, how many new workers will he hire? 3. If the investor is conservative, how many new workers will he hire
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