MedStar Health is expanding into Virginia. The firm must select one location where it can build a
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Question:
MedStar Health is expanding into Virginia. The firm must select one location where it can build a clinic to serve patients. The following table lists the expected profits for clinics in three locations and the expected probabilities of the two possible situations: high numbers of patients utilizing the clinic or low numbers of patients utilizing the clinic.
Find the best decision using the following: a. Develop a payoff table for this situation. b. Find the following:
1. Maximax
2. Maximin
3. Equal likelihood
4. Minimax regret
c. Create a sensitivity graph comparing the different alternatives as to the probability of numbers of patients changes.
Related Book For
Elementary Statistics
ISBN: 978-0538733502
11th edition
Authors: Robert R. Johnson, Patricia J. Kuby
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