The consultant suggested that an expenditure of $150,000 on promotional campaign over the planning horizon will effectively reduce the probability of the worst-case scenario to zero. If the campaign can be expected to also increase the probability of the best-case scenario to .4, is it a goodinvestment.

Transcribed Image Text:

Center Size Small Medium Large Worst Case 400 -250 -400 Demand Scenario Base Case 500 650 580 Best Case 660 800 990