Question: A manager has compiled estimated costs for vanous capacity alternatives but is reluctant to assign probabilities to the states of nature. Assuming the values in

A manager has compiled estimated costs for vanous
A manager has compiled estimated costs for vanous capacity alternatives but is reluctant to assign probabilities to the states of nature. Assuming the values in the payoff table are estimated costs and the goal is to minimize expected costs STATE OF NATURE 1 $20 142 115 B1 97 54 A B C Alternative "Cost in s thousands a. Is there any alternative that would never be appropriate in terms of minimizing expected cost? O Alternative A O Alternative B O Alternative None b. For what range of P(2) would alternative A be the best choice of the goal is to minimize expected cost? Choose Alternative A for P2) c. For what range of Pit would alternative A be the best choice if the goal is to minimize expected cost? Choose Atemative A for P(1)

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