Trey Whitmore, Operations Manager at National Consumers, Inc

Multiple Choice

Trey Whitmore, Operations Manager at National Consumers, Inc.(NCI) , is evaluating alternatives for increasing capacity at NCI's Fountain Hill plant.He has identified four alternatives, and has constructed the following payoff table which shows payoffs (in $1,000,000's) for the three possible levels of market demand: The opportunity loss for the combination "Purchase New Equipment" and "Low" is ___.

A) 0.5
B) 1.5
C) 2.5
D) 3.0
E) 3.5