The Operations Manager for a Local Bus Company Wants to Decide

Multiple Choice

The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new bus for his company. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, moderate, or high, as follows.

-If he uses Bayes' decision rule,which size bus will he decide to purchase?

A) Small
B) Medium
C) Large
D) Either small or medium
E) Either medium or large