Question: A manager is trying to decide whether to build a small, medium, or large facility. Demand can be low, average, or high, with the estimated

A manager is trying to decide whether to build a small, medium, or large facility. Demand can be low, average, or high, with the estimated probabilities being

0.25,

0.40,

and

0.35,

respectively.

A manager is trying to decide whether to build a

High 0.35 150 Avg 0.40 $80 Low 0.25 - $70 High 0.35 Expand torg 5135 Large Med Avg 0. 26 Small High 0.35 Do nothing $100 Expand tol s100 Expand to meggo Do nothing $25 Expand to medzo Do nothing $15 Avg 0.40 Low 0.25914 What should management do to achieve the highest expected payoff? The management should build a in order to achieve the highest expected payoff of $(Enter your response as a whole number.) High 0.35 150 Avg 0.40 $80 Low 0.25 - $70 High 0.35 Expand torg 5135 Large Med Avg 0. 26 Small High 0.35 Do nothing $100 Expand tol s100 Expand to meggo Do nothing $25 Expand to medzo Do nothing $15 Avg 0.40 Low 0.25914 What should management do to achieve the highest expected payoff? The management should build a in order to achieve the highest expected payoff of $(Enter your response as a whole number.)

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