. Modern Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Modern Electronics is considering building a new facility but the estimated profits would be impacted by the type of market that develops. The probability for a strong market is 0.3; for a fair market is 0.3; and for a poor market is 0.4. You are responsible for advising the president of Modern Electronics on the type facility that should be built or to not build a facility at all. The table shows the estimated profits under each market and for each size facility.

Explanation: You can use QM for Windows->Decision Analysis->Decision Table with the above information.

Estimated Profits

Strong Market Fair MarketPoor Market

Build a large facility30,00025,000-20,000

Build a medium-size facility27,50025,000-10,000

Build a small facility15,00012,500-1000

Do not build a facility000

1.What is your recommendation to the president based on expected value that maximizes profits (EMV).

Answer:

Explanation (include expected monetary value):

Software Output:

2.Provide a second recommendation to the president that minimizes regret.

Answer:

Explanation (include expected monetary value):

Software Output: