Multiple Choice
A family business is considering making an investment in its manufacturing operation. Three decisions are under consideration: (1) a large investment; (2) a medium investment; and (3) a small investment. The business believes that there are three possible future outcomes for its product: (1) increasing demand; (2) stable demand; and (3) decreasing demand. The business believes that the probability for increasing, stable and decreasing product demand are 0.4, 0.5, and 0.1, respectively. The following payoff table describes the decision situation: 
The expected value for the small investment decision is
A) $540,000.
B) $400,000.
C) $330,000.
D) $165,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Globalization has affected both manufacturing and service
Q3: In a decision-making situation,the events that may
Q10: Many companies now find it necessary to
Q11: A payoff table is a quantitative technique
Q13: A decision criterion that results in the
Q17: Globalization of the supply chain for many
Q72: Productivity is the most common measure of
Q94: A small parts manufacturer has just engineered
Q95: Productivity can be increased by<br>A) increasing outputs.<br>B)
Q97: A family business is considering making an