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The name of book is Schaum's Outlines - Operations Research, 2nd Edition A manufacturer must decide whether to extend credit to a retailer wishing to

image text in transcribedThe name of book is Schaum's Outlines - Operations Research, 2nd Edition
A manufacturer must decide whether to extend credit to a retailer wishing to open an account with the firm. Past experience with new accounts shows that 50 percent arc poor risks, 30 percent are average risks, and 20 percent are good risks. If credit is extended, the manufacturer can expect to lose $30000 with a poor risk, make $25000 with an average risk, and make $50000 with a good risk. If credit is not extended, the manufacturer neither makes nor loses money, since no business is transacted with the retailer. Determine the recommended decision under the a priori criterion

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