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The owner of the Long Branch Computer Hardware Company must decide among building 100 servers, building 5000 hard drives, or leasing all their equipment to
The owner of the Long Branch Computer Hardware Company must decide among building 100 servers, building 5000 hard drives, or leasing all their equipment to another company. The profit that will result from each alternative will be determined by whether material costs remain stable, increase moderately, or increase significantly. In the payoff table below the estimated profitleosses are given in $thousands. Material Costs Moderate Increase Servers 2100 800 2300 Hard Drives 1830 1010 170 Leasing 550 650 750 Signicant Increase Determine the best decision using the Equal likelihood (Laplace) decision criterion. Round to the nearest integer. {23- Decision: Hard Drives based on 2670 : max(600,2670,1950) {23- Decision: Stable based on 1493 : max(1493,820,573) :23- Decision: Hard Drives based on 890 : max(200,890,650) 23- Decision: Servers based on 1733 : max(1733,1003,650) {3- Decision: Hard Drives based on 1335 : max(300,1335,975)
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