Assignment:
Howland & Sons Plumbers is considering adding an extra truck to increase the number of customers they can serve. They create a payoff table to weight their options. Determine what choice they should make using the Hurwicz (a = 0.55) and equal likelihood criteria. What are the expected payoffs?
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Decision
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Increased demand
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Steady demand
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Falling demand
|
|
Extra truck
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$8,450
|
$1,200
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-$2,400
|
|
No extra truck
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$3,950
|
$3,400
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$2,650
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Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.