Build Rite Question 1

Build Rite Question 1 - Weighted Payoff $221,667...

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- + + = $250, , $625, $158, 000 100 000 000 3 333 $100, , $415, $221, 000 150 000 000 3 667 + + = $50, , $300, $143, 000 80 000 000 3 333 + + = 100 250 350 - - = ( 29 150 100 50 - = 625 625 0 - = 100 100 0 - = 150 150 0 - = 625 415 210 - = 100 50 50 - = 150 80 70 - = 625 300 325 - = 14. Build-Rite Construction a. Maximin Criterion—Best Decision: Subcontract . .. Payoff: $100,000 b. Maximax Criterion—Best Decision: Hire . .. Payoff: $625,000 c. Laplace Criterion—Best Decision: Subcontract .
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Unformatted text preview: .. Weighted Payoff: $221,667 Alternative Weighted Payoff Hire Subcontract Do nothing d. Minimax Regret Criterion—Subcontract . .. Minimum Maximum Regret $210,000 Regrets ($000) Demand for Home Improvements Alternative Low Moderate High Maximum Hire 350 Subcontract 210 Hire 325...
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