or large facility. The payoffs received for each size of facility will depend on the demand for

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or large facility. The payoffs received for each size of facility will depend on the demand for urgent care services, which could be low, medium, or high. After working with a real estate consultant, the company has agreed upon the following payoff matrix for this decision problem:

Demand for Urgent Care Services

Size of Facility Low Medium High

Small

200 200 200

Medium

300 500 500

Large

- 300 300 800

(

Payoff in $

1, 000

)

The executive team estimates a

20 %

chance the demand will be low, a

35 %

chance the demand will be medium, and a

45 %

chance that it will be high.

What is the decision that should be made according to the maximax decision rule?

Posted Date: May 18, 2024 04:04 AM

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or large facility. The payoffs received for each size of facility will depend on the demand for

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