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

The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues (in thousands) will vary with how well taxpayers comply with the new tax code. However, the probabilities of having low, medium, and high compliance are unknown. Determine the best decision using the following criteria: Number of workers Low compliance Medium compliance High compliance 1 30 30 40 2 80 40 10 3 100 60 -20

(a) Maximax and maximin (2 mark)

(b) Equal likelihood (2 marks)

(d) Develop an appropriate decision table to determine the best decision. (4 marks)

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