Question: The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary

The local operations manager for the IRS must

The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. Investment Compliance Low Medium High 50 50 50 I 2 100 60 20 3 150 70 - 10 a) If he uses the maximin and Laplace criterion, how many new workers will he hire? b) If he uses the minimax regret criterion, how many new workers will he hire? c) If he thinks the chances of a low, medium, and high compliance are 20%, 30%, and 50% respectively, what are the expected net revenues for the number of workers he will decide to hire? d) If he thinks the chances of a low, medium, and high compliance are 20%, 30%, and 50% respectively, what is the expected opportunity loss for the number of workers he will decide to hire

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