The Canucks major league baseball team is going to enter the free agent market over the winter

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The Canucks major league baseball team is going to enter the free agent market over the winter to sign a new starting pitcher. They are considering five prospects who will enter the free agent market. All five pitchers are in their mid-twenties, have been in the major leagues for approximately five years, and have been relatively successful. The team€™s general manager has compiled a lot of information about the pitchers from scouting reports and their playing histories since high school. He has developed a chart projecting how many wins each pitcher will likely have during the next 10 years given three possible future states of nature the pitchers will be relatively injury free, they will have a normal career with injuries, or they will have excessive injuries. The following payoff table shows the results.


Physical Condition No Injuries Normal Excessive Injuries Pitcher Miguel Garcia 117 142 65 Juan Ramon 164 140 58 Fred Ter


Determine the best pitcher to sign, using the following decision criteria:
a.  Maximax
b.  Maximin
c.  Equal likelihood
d.  Hurwicz (α =.35)

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Operations Management Creating Value Along the Supply Chain

ISBN: 978-1118301173

1st Canadian Edition

Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi

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