A manager of a holiday specialty store must determine how manytemporary workers to hire for the holiday season. Estimatedrevenues (thousands of dollars) are based on poor, good, andexcellent economic conditions and whether one, two or three workersare hired as follows:
| Economic | Condition | |
| Workers Hired | Excellent | Good | Poor |
| One | 50 | 50 | 50 |
| Two | 100 | 60 | 20 |
| Three | 150 | 70 | -10 |
22. If a Maximax strategy is used, how manyworkers should be hired?
a. one
b. two
c. three
d. either one or two
e. either two or three
23. If a Maximin strategy is used, how manyworkers should be hired?
a. one
b. two
c. three
d. either one or two
e. either two or three
24. If an Equally Likely strategy is used, howmany workers should be hired?
a. one
b. two
c. three
d. either one or two
e. either two or three
25. If it’s determined that there’s a 20% chance of excellent,30% chance of good, and 50% chance of poor economic conditions,what’s the expected value of alternative#2--hiring two workers?
a. $16000
b. $26000
c. $46000
d. $48000
e. $50000
26. A Risk Taker (decision maker) would choosethe project with
a. The highest Coefficientof Variation
b. The highest ExpectedValue
c. The highest StandardDeviation
d. The lowest Coefficient ofVariation
e. The lowest StandardDeviation
27. A Risk Averse (decision maker) would choosethe project with
a. The highest Coefficientof Variation
b. The highest ExpectedValue
c. The highest StandardDeviation
d. The lowest Coefficient ofVariation
e. The lowest StandardDeviation
28. A Risk Neutral (decision maker) wouldchoose the project with
a. The highest Coefficientof Variation
b. The highest ExpectedValue
c. The highest StandardDeviation
d. The lowest Coefficient ofVariation
e. The lowest StandardDeviation
