Jones Inc. needs to make a decision under uncertainty. Given the information below evaluate their options. Alternatives Favourable market Average market Unfavourable market Large machine $ 137,500 $ 50,000 $ -75,000 Small machine $ 100,000 $ 30,000 $ -5,000 Outsource $ 50,000 $ 20,000 $ -500 Do nothing $ 0 $ 0 $ 0 

a) What is the best decision using equally likely?  

b) What is the best decision using maximin?  

Answer rating: 100% (QA)

Jones Incs Decision Under Uncertainty Well analyze Jones Incs options using two common decisionmakin... View the full answer