Which alternative should be chosen based on the laplace

Assignment Help Management Theories

Reference no: EM133484689

Question: A plant manager is considering buying additional stamping machines to accommodate increasing demand. The alternatives are to buy 1 machine, 2 machines, or 3 machines. The profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. The payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager.

Alternative Bid Accepted Bid Rejected
Buy 1 machine $10 $5
Buy 2 machines $30 $4
Buy 3 machines $40 $2

Using the information above, which alternative should be chosen based on the Laplace criterion?

Reference no: EM133484689

Questions Cloud

Is justified-true-belief notion of knowledge : Present an argument either in defense or against Edmund Gettier's objections to the justified-true-belief notion of knowledge.

Discuss a prominent environmental or sustainability practice : Discuss a prominent environmental or sustainability practice employed by a company that you believe has been forward-thinking and successful in its efforts.

Perform a needs assessment of the organization : Review the needs assessment to identify possible project topics. In preparation for the capstone change project proposal, compile a list of three

What else did you learn about staring a new business : What one piece of legal advice did you find that would be most helpful in starting a new business? Why? What else did you learn about staring a new business

Which alternative should be chosen based on the laplace : which alternative should be chosen based on the Laplace criterion? illustrates the profits realized (in $000's) based on the different scenarios faced

How is the use of the equity method subject : How is the use of the equity method subject to manipulation? How might a financial statement reader detect such behavior

What are the steps to critically evaluate research articles : What are the steps to critically evaluate research articles, and how does the scientific method (ensure you define this term too) help you do this

How do they reflect the filipino philosophy of life : Document indigenous legends, poems, epics, songs, riddles (bugtong), proverbs (salawikain) and describe rituals and dances and discuss their themes in class.

What are the target markets for such a product : What need does this product fill? - What are the target markets for such a product? - What type of consumer good is this product?

User Account

All Pages