BUS 644 Week 2 DQ 1

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44-Week-2-DQ-1 Plant Capacity. A small building
contractor has recently experienced two
successive years in which work opportunities
exceeded the firms capacity. The contractor must
now make a decision on capacity for next year.
Estimated profits under each of the two possible
states of nature are as shown in the table below.
Which alternative should be selected if the
decision criteria isa. Maximaxb. Maximina.
Laplaceb. Minimax regretIndicate and
incorporate recommendations to management in 200
words. You must respond to at least two of your
classmates postings.Next Year's Demand
AlternativeLowHighDo nothing5060Expand2
080Subcontract4070

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