Question: The construction manager for Acme Construction, Inc. must decide whether to build single family homes, townhouse, or condominium. He estimates annual profits (in thousands of

The construction manager for Acme Construction, Inc. must decide whether to build single family homes, townhouse, or condominium. He estimates annual profits (in thousands of dollars) will vary with population trends as follows:

Building type

Population steady

Population grows slowly

Population grows rapidly

Single family

100

90

70

Townhouse

50

170

90

Condominium

20

100

220

PART B

If the construction manager were a pessimist, what criterion would he choose? What would be the best choice of building using this criterion?

Select one:

a. Maximin; Single family

b. Maximax; Condominium

c. Maximin; Townhouse

d. None of the other options

e. Maximax; Single family

f. Maximin; Condominium

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!