CBA390 HW#4_Ch 12 Inventory Mgmt & Appendix A Decision Models_Summer 2020_1 References Mailings Review View Tell me Aav A V AaBbCcDdEe AaBbCcDdEe Aa Normal No Spacing Q:3-28 Even though independent gasoline stations have been having a difficult time, Susan Solomon has been thinking about starting her own independent gasoline station. Susan's problem is to decide how large her station should be. The annual returns will depend on both the size of her station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Susan developed the following table: SIZE OF FIRST STATION Small Medium Large Very large GOOD FAIR POOR MARKET MARKET MARKET (S) ($) 50,000 20,000 - 10,000 80,000 30,000 -20,000 100,000 30,000 -40.000 300,000 25,000 -160,000 For example, if Susan constructs a small station and the market is good, she will realize a profit of $50,000 (b) What is the maximax decision? (c) What is the maximin decision? (d) What is the equally likely decision? Q#3.28. (a) will be EXCLUDED nited States) 1 Focus W P A O