USE THE FOLLOWING INFORMATION FOR

QUESTIONS 1 & 2

A manager of a holiday specialty store must determine how many temporary workers to hire for the holiday season. Estimated revenues (thousands of dollars) are based on poor, good, and excellent economic conditions and whether one, two or three workers are hired as follows:

1. If a maximin strategy is used, how many people should be hired?

a. one

b. two

c. three

d. either one or two

e. either two or three

2. If a maximax strategy is used, how many people should be hired?

a. one

b. two

c. three

d. either one or two

e. either two or three

3. If an equally likely strategy is used, how many people should be hired?

a. one

b. two

c. three

d. either one or two

e. either two or three

4. If its determined that theres a 20% chance of excellent, 30% chance of good, and 50% chance of poor economic conditions whats the expected value of hiring 3 workers?

a. $16000

b. $26000

c. $46000

d. $48000

e. $50000