Question: Need HELP please with Part D. Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming

Need HELP please with Part D. Build-RiteNeed HELP please with Part D.

Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, so Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But Build-Rite must decide now whether to hire more employees, do nothing, or develop subcontracts with other home improvement contractors. Build-Rite has developed the following payoff table: Alternative Hire Subcontract Do nothing Demand for Home Improvements Low Moderate ($169,000) $207,000 $27,000 $219,000 $95,000 $127,000 High $430,000 $431,000 $358,000 Which alternative is best, according to each of the following decision criteria? a. The best decision according to maximin criterion is alternative Do nothing and the payoff for this decision is $ 95000. (Enter your response as an integer.) b. The best decision according to maximax criterion is alternative Subcontract and the payoff for this decision is $ 431000. (Enter your response as an integer.) c. The best decision according to laplace criterion is alternative Subcontract and the weighted payoff for this decision is $ 225666. (Enter your response as an integer.) and the minimum maximum regret for this decision is $. (Enter your d. The best decision according to minimax regret criterion is alternative response as an integer.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!