Today’s Electronics specializes in manufacturing modernelectronic components. It also builds the equipment that producesthe components. Phyllis Weinberger, who is responsible for advisingthe president of Today’s Electronics on electronic manufacturingequipment, has developed the following table concerning a proposedfacility:
a. Develop an opportunity loss table.
b. What is the minimax regret decision?
Use .7 alpha for Hurwicz
| Profit ($) |
| Strong Market | Fair Market | Poor Market |
Large Facility | 550,000 | 110,000 | -310,000 |
Medium-sized Facility | 300,000 | 129,000 | -100,000 |
Small Facility | 200,000 | 100,000 | -32,000 |
No Facility | 0 | 0 | 0 |
