Substitute favourable market unfavourable market build, Operation Management

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Karen Villagomez, president of Wright Industries, is considering whether to build a manufacturing plant in the Ozarks. Her decision is summarized in the following table: Alternatives Favourable Market Unfavourable Market Build large plant 400,000 -200,000 Build small plant 120,000 20,000 don't Build 0 0 Market Probability 0.30 0.70 to maximize the return, Karen's decision should be to ______________ (don't build, build large plant, build small plant)


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