Question: Represent the following problem with a matrix and describe what the decision maker should do in the problem. When you describe it, you should state
Represent the following problem with a matrix and describe what the decision maker should do in the problem. When you describe it, you should state a decision rule that the decision maker is following. You should explain why you chose that decision rule for the decision maker, that is, why the decision maker should follow that rule in this case.
Chris, who is the head of his division in the company, must cast the deciding vote in determining how bcuts will be handled. He may either vote for salary cuts or for layoffs. If he votes for salary cuts, all of the employees will have a 25% wage reduction. If he votes for layoffs, then 25% of divisions will be cut completely and their employees will be laid off, but the remaining 75% will continue to operate at their present salary. Chris' main concern is to preserve the salaries and jobs of Chris's division. His division will be preserved if it's one of the good ones; however, Chris doesn't have any clue who will determine which divisions are good or how they will make that determination.
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