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Question - A local firm is deciding on the number of temporary workers to hire. The options are hiring 3,4,5,6 or 7. Hiring a temporary worker will have benefits for the company that will depend on the amount hired, the synergy created, and market conditions. The following scenarios have been developed by management to assess the amount to hire, where the amount shows a success rating for having the corresponding number of temporary workers under each market condition.
Workers
Low Market Conditions
Medium Market Conditions
High Market Conditions
3
90
75
65
4
95
70
15
5
6
7
80
a) Based on the maximin criterion, how many new workers should be hired?
b) Based on the minimax regret criterion, how many new workers should be hired?
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