Deck 29: Decision-Making Tools

Question 1

20)A company's decision to introduce a new product into the market is an example of ______.

A)decision under certainty
B)decision under uncertainty
C)decision under state of nature
D)decision under risk

Answer 1

B

Question 2

9)The outcomes that result given the actual decision made and the state of nature that occurs are referred to as ______.

A)consequences
B)states of nature
C)payoffs
D)decision alternatives

Answer 2

A

Question 3

17)Decisions are made when the state of nature is known under which of the following scenarios?

A)decisions under certainty
B)decisions under uncertainty
C)decisions under state of nature
D)decisions under risk

Answer 3

A

Question 4

11)______ are future events or occurrences that can take place that are beyond the control of the decision maker.

A)Consequences
B)States of nature
C)Payoffs
D)Decision alternatives

Question 5

6)Reduce the defect rate of a manufacturing process by 5% over the next 6 months.This example is an illustration of which of the following steps involved in a systematic decision-making process?

A)Define the specific and measurable objectives the decision needs to accomplish.
B)Determine the best decision-making tool to use.
C)Evaluate each alternative solution.
D)Monitor the results.

Question 6

3)Which of the following is FALSE about the steps involved in a systematic decision-making process?

A)Define the problem or challenge as clearly and concisely as possible.
B)Determine the best decision-making tool to use.
C)Generate a limited list of possible solutions.
D)Evaluate each alternative solution.

Question 7

1)Which of the following statements is FALSE about systematic decision-making process?

A)The strategic decision-making process is used to make strategic long-term decisions.
B)Using a systematic approach guarantees that the decision will be the "right" one.
C)The strategic decision- making process is used to make short-term decisions.
D)The strategic decision-making process consists of various steps.

Question 8

2)The systematic decision-making process that operations and supply chain managers rely on consists of ______ steps:

A)five
B)six
C)seven
D)eight

Question 9

5)Evaluate the results to determine if the desired objectives were achieved in the established timeframe.This statement applies to which of the following steps involved in a systematic decision-making process?

A)Define the problem or challenge as clearly and concisely as possible.
B)Determine the best decision-making tool to use.
C)Evaluate each alternative solution.
D)Monitor the results.

Question 10

19)The decision maker-although not certain-is aware of the chances,or probabilities,of the various states of nature occurring.This statement relates to which of the following scenarios?

A)decision under certainty
B)decision under uncertainty
C)decision under state of nature
D)decision under risk

Question 11

16)The classification of decision-making situations is based on ______ about the states of nature

A)degree of uncertainty
B)frequency of occurrence
C)time of occurrence
D)length of occurrence

Question 12

18)Decisions are made when there are not only multiple states of nature,but they are also unpredictable and the decision maker cannot even make an educated guess about the chances,or probabilities,of their coming.This statement relates to which of the following scenarios?

A)decisions under certainty
B)decisions under uncertainty
C)decisions under state of nature
D)decisions under risk

Question 13

12)Consider that you are getting ready to leave outside in the morning,and weather forecasters predict rain.Whether or not it will rain is an illustration of ______.

A)consequences
B)states of nature
C)payoffs
D)decision alternatives

Question 14

8)The actions decision-makers can take to address or solve the problem are referred to as ______.

A)consequences
B)states of nature
C)payoffs
D)decision alternatives

Question 15

7)Any decision-making situation is comprised of ______ elements.

A)three
B)four
C)five
D)six

Question 16

4)Weigh the cost and time related to selecting and implementing each alternative.This statement applies to which of the following steps involved in a systematic decision-making process?

A)Define the problem or challenge as clearly and concisely as possible.
B)Determine the best decision-making tool to use.
C)Evaluate each alternative solution.
D)Monitor the results.

Question 17

15)Depending on the degree of certainty about the states of nature,every decision-making situation can be classified into ______ categories.

A)three
B)four
C)five
D)six

Question 18

10)The values the decision-maker places on each combination of actual decisions and states of nature are referred to as ______.

A)consequences
B)states of nature
C)payoffs
D)decision alternatives

Question 19

13)Consider that you are getting ready to leave outside in the morning,and weather forecasters predict rain.You getting wet or staying dry and being burdened with carrying a raincoat or not are all examples of ______.

A)consequences
B)states of nature
C)payoffs
D)decision alternatives

Question 20

14)Consider that you are getting ready to leave outside in the morning,and weather forecasters predict rain.If you decide to take your raincoat and it rains,which of the following is the corresponding payoff?

A)There is no cost for dry cleaning your suit,but you were burdened by carrying the raincoat.
B)There is no cost for dry cleaning your suit,and you were not burdened by carrying the raincoat.
C)There is a cost for dry cleaning your suit,and you were burdened by carrying the raincoat.
D)There is a cost for dry cleaning your suit,but you were not burdened by carrying the raincoat.

Question 21

34)ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best alternative using the Laplace criterion solution.Assume equal likelihood for low demand and high demand.

A)Expand current facility.
B)Build small factory.
C)Build large factory.
D)Determine a new alternative.

Question 22

29)______ is the expected value of regret associated with each decision.

A)Expected value of perfect information
B)Expected regret
C)Expected loss
D)Expected value

Question 23

38)In Hurwicz criterion,coefficient α's mirror image (1-α)is called the ______.

A)coefficient of realism
B)coefficient of pessimism
C)coefficient of payoff
D)coefficient of regret

Question 24

32)Laplace criterion is an approach to solving problems under which of the following conditions?

A)decision-making under certainty
B)decision-making under uncertainty
C)decision-making under risk
D)decision-making under regret

Question 25

21)A company is planning to build a new facility in a foreign country,and the success or failure of this venture depends on the demand for the products produced at the facility.It estimates that there is a 70% probability of high demand for the products and a 30% probability of low demand.This is an example of ______.

A)decision under certainty
B)decision under uncertainty
C)decision under state of nature
D)decision under risk

Question 26

31)ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best alternative,given that the demand will be high.

A)Expand current facility
B)Build small factory
C)Build large factory
D)Determine a new alternative

Question 27

24)Which of the following is a decision-making approach used when the decision maker is optimistic about the future events and their outcomes,identifies the maximum payoff associated with each decision,and chooses the maximum of the maximum payoffs?

A)maximax criterion
B)Laplace criterion
C)maximin criterion
D)minimax regret criterion

Question 28

22)Which of the following is a decision-making approach a person uses when the negative impact of making the wrong decision is so high that he or she chooses that alternative that guarantees at least the minimum payoff?

A)maximax criterion
B)Laplace criterion
C)maximin criterion
D)minimax regret criterion

Question 29

30)ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best alternative,given that the demand will be low.

A)Expand current facility.
B)Build small factory.
C)Build large factory.
D)Determine a new alternative.

Question 30

37)In Hurwicz criterion,the coefficient α is often called the ______.

A)coefficient of realism
B)coefficient of pessimism
C)coefficient of payoff
D)coefficient of regret

Question 31

40)In the Hurwicz equation,Hi = α x (maximum payoff)+ (1-α)x (minimum payoff); if we set α = 0,then the equation reduces to ______.

A)maximin criterion
B)maximax criterion
C)Laplace criterion
D)minimax regret criterion

Question 32

26)Which of the following is a decision-making approach that attempts to find a compromise between the two extremes posed by the pessimistic maximin criterion and the optimistic maximax criterion by applying a certain percentage weight (α)to the most optimistic outcome,and (1-α)to the most pessimistic outcome.

A)maximax criterion
B)Laplace criterion
C)maximin criterion
D)Hurwicz criterion

Question 33

23)Which of the following is a decision-making approach that attempts to minimize the regret,or loss,associated with making a nonoptimal decision?

A)maximax criterion
B)Laplace criterion
C)maximin criterion
D)minimax regret criterion

Question 34

27)______ is the weighted average of the values of all possible outcomes of the decision,or the average payoff that would be realized if the decision were to be repeated many times.

A)Expected value of perfect information
B)Expected regret
C)Expected loss
D)Expected value

Question 35

35)ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best alternative using the maximin criterion.

A)Expand current facility.
B)Build small factory.
C)Build large factory.
D)Determine a new alternative.

Question 36

25)Which of the following is a decision-making approach used when the probabilities of the states of nature are unknown,assumed as equal,and the different decision alternatives should be evaluated using the expected value of their payoffs?

A)maximax criterion
B)Laplace criterion
C)maximin criterion
D)Hurwicz criterion

Question 37

28)______ is the difference between the expected value of the decision with perfect information and the expected value of the decision without perfect information.

A)Expected value of perfect information
B)Expected regret
C)Expected loss
D)Expected value

Question 38

36)ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best alternative using the maximax criterion.

A)Expand current facility.
B)Build small factory.
C)Build large factory.
D)Determine a new alternative.

Question 39

39)In the Hurwicz equation,Hᵢ = α x (maximum payoff)+ (1-α)x (minimum payoff); if we set α = 1,then the equation reduces to ______.

A)maximin criterion
B)maximax criterion
C)Laplace criterion
D)minimax regret criterion

Question 40

33)If the payoffs are in monetary terms,the expected value of the payoffs is often referred to as ______.

A)expected profit value (EPV)
B)expected loss value (ELV)
C)expected returns value (ERV)
D)expected monetary value (EMV)

Question 41

55)XYZ is a paint product manufacturer,and one of the plants is experiencing a substantial increase in demand.The future demand for the products could be low,medium,or high,with probabilities estimated to be 25%,50%,and 30%,respectively.The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand.Given the following payoff matrix,the firm's manager should ______.

A)subcontract additional capacity.
B)build a new plant.
C)do nothing.
D)expand the plant.

Question 42

54)In a single toss of a coin,the events heads and tails are ______

A)mutually exclusive
B)collectively exhaustive
C)dependent
D)mutually exclusive and collectively exhaustive

Question 43

42)______ is the difference between the best payoff for a given state of nature and the payoff associated with the actual decision made for that particular state of nature.

A)Profit
B)Loss
C)Returns
D)Regret

Question 44

49)Which of the following is a drawback of the minimax regret criterion?

A)It ignores the payoffs associated with the "high demand" state of nature.
B)It ignores the payoffs associated with the "low demand" state of nature.
C)It is not a good method to use when the states of nature are not equally probable.
D)It ignores the maximum payoff that could be realized if the decision maker were a risk taker and the probabilities associated with the possible state of nature.

Question 45

50)Which of the following statements is FALSE about minimax regret criterion?

A)It is superior to use the maximax,maximin,and Hurwicz criteria.
B)It includes more relevant problem information.
C)It leads to more informed decision-making.
D)It uses all the information available in the payoff matrix.

Question 46

43)Costs,losses,and expenditures are examples of ______.

A)positive-flow payoffs
B)negative-flow payoffs
C)optimized-flow payoffs
D)reduced-flow payoffs

Question 47

45)ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best alternative using the minimax regret criterion.

A)Expand current facility.
B)Build small factory.
C)Build large factory.
D)Determine a new alternative.

Question 48

41)ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best alternative using the Hurwicz criterion.Assume α = 0.7.

A)Expand current facility.
B)Build small factory.
C)Build large factory.
D)Determine a new alternative.

Question 49

47)Which of the following is a drawback of the maximax criterion?

A)It ignores the payoffs associated with the "high demand" state of nature.
B)It ignores the payoffs associated with the "low demand" state of nature.
C)It is not a good method to use when the states of nature are not equally probable.
D)It ignores the maximum payoff that could be realized if the decision maker were a risk taker.

Question 50

51)______ is the potential that a decision made will lead to undesirable outcomes.

A)Risk
B)Failure
C)Regret
D)Success

Question 51

59)Which of the following is a technique used for making sequential decisions that allow the decision maker to visually map each possible decision alternative to determine the best decision?

A)decision tree
B)sensitivity analysis
C)sequential analysis
D)decision priority

Question 52

53)Mutually exhaustive events are events that ______.

A)can occur at the same time
B)cannot occur at the same time
C)occur one after the other
D)occur with equal probabilities

Question 53

48)Which of the following is a drawback of the Laplace criterion?

A)It ignores the payoffs associated with the "high demand" state of nature.
B)It ignores the payoffs associated with the "low demand" state of nature.
C)It is not a good method to use when the states of nature are not equally probable.
D)It ignores the maximum payoff that could be realized if the decision maker were a risk taker and the probabilities associated with the possible state of nature.

Question 54

44)Revenues,profits,and income are examples of ______.

A)positive-flow payoffs
B)negative-flow payoffs
C)optimized-flow payoffs
D)reduced-flow payoffs

Question 55

52)The risk of making the wrong decision is higher when the degree of uncertainty is ______.

A)high
B)low
C)constant
D)zero

Question 56

60)Which of the following is an analysis a decision maker conducts to determine how sensitive a decision alternative is to change in the probability values of nature?

A)decision tree
B)sensitivity analysis
C)sequential analysis
D)decision priority

Question 57

46)Which of the following is a drawback of the maximin criterion?

A)It ignores the payoffs associated with the "high demand" state of nature.
B)It ignores the payoffs associated with the "low demand" state of nature.
C)It is not a good method to use when the states of nature are not equally probable.
D)It ignores the maximum payoff that could be realized if the decision maker were a risk taker.

Question 58

57)XYZ is a paint product manufacturer,and one of the plants is experiencing a substantial increase in demand.The future demand for the products could be low,medium,or high,with probabilities estimated to be 25%,50%,and 30%,respectively.The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand.Given the following payoff matrix,compute the EVPI.

A)$9.5 M
B)$10 M
C)$12.4 M
D)$7 M

Question 59

58)Which of the following statement is FALSE about the expected value approach to make decisions under risk?

A)It assumes that the decision maker is rational and will choose the optimum decision with the highest expected value.
B)It ignores the elements other than monetary profits.
C)It takes irrational factors into consideration.
D)It ignores factors such as quality of life or the current monetary status of the decision maker.

Question 60

XYZ is a paint product manufacturer,and one of the plants is experiencing a substantial increase in demand.The future demand for the products could be low,medium,or high,with probabilities estimated to be 25%,50%,and 30%,respectively.The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand.Given the following payoff matrix,compute the expected value of decisions with perfect information. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Demand }$

$\begin{array} { | c | c | c | c | } \hline \text { Decision Altemative } & \text { Low(20\%) } & \text { Medium(50\%) } & \text { High (30\%) } \\\hline \begin{array} { c } \text { Subcontract additional } \\\text { capacity }\end{array} & \$ 7 \text { million } & \$ 40 \text { million } & \$ 70 \text { million } \\\hline \text { Build a new plant } & - \$ 55 \text { million } & \$ 25 \text { million } & \$ 100 \text { million } \\\hline\end{array}$

A)$45.5 M
B)$53M
C)$12.4 M
D)$70 M

Question 61

68)Using a payoff matrix to compute the expected values of a decision is appropriate as long as ______ decision(s)is/are to be made at a given point in time.

A)two
B)three
C)multiple
D)one

Question 62

Use the following data to answer questions 77-87.
79)Refer to the data on Expected Demand for Acme Widgets.For the various demand scenarios and their associated probabilities,the option to outsource has an expected value of ______.

A)$21.58 million
B)$39.56 million
C)$36.20 million
D)$51.55 million

Question 63

XYZ is a paint product manufacturer,and one of the plants is experiencing a substantial increase in demand.The future demand for the products could be low,medium,or high,with probabilities estimated to be 25%,50%,and 30%,respectively.The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand.Given the following payoff matrix,compute the expected regret for the option of building a new plant. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Demand }$

$\begin{array} { | c | c | c | c | } \hline \text { Decision Aternative } & \text { Low } ( 20 \% ) & \text { Medium } ( 50 \% ) & \text { High (30\%) } \\\hline \begin{array} { c } \text { Subcontract additional } \\\text { capacity }\end{array} & \$ 7 \text { million } & \$ 40 \text { million } & \$ 70 \text { m illion } \\\hline \text { Build a new plant } & - \$ 55 \text { million } & \$ 25 \text { million } & \$ 100 \text { million } \\\hline \text { Do nothing } & \$ 15 \text { million } & \$ 30 \mathrm {~m} \text { illion } & \$ 85 \text { million } \\\hline\end{array}$

A)$10.6 M
B)$21.5 M
C)$9.5 M
D)$14 M

Question 64

66)In a decision tree,a circle node represents a(n)______.

A)independent event
B)dependent event
C)predictable event
D)chance event

Question 65

65)In a decision tree,a square node represents a ______.

A)decision point
B)state of nature
C)consequence
D)payoff

Question 66

Use the following data to answer questions 77-87.
78)Refer to the data on Expected Demand for Acme Widgets.For the various demand scenarios and their associated probabilities,the option to build has an expected value of ______.

A)$27.80 million
B)$31.40 million
C)$41.60 million
D)$52.55 million

Question 67

61)A decision tree is drawn from ______.

A)top to bottom
B)right to left
C)left to right
D)bottom to top

Question 68

64)In a decision tree,branches from a circle node represent ______.

A)decision alternatives
B)uncertain event
C)state of nature
D)consequences

Question 69

67)Which of the following is FALSE about constructing and analyzing decision trees?

A)Begin the tree with initial decision to be made.
B)Expand the tree.
C)Evaluate the tree without further expanding it.
D)Analyze the tree and make a decision.

Question 70

63)In a decision tree,branches from a square node represent ______.

A)decision alternatives
B)uncertain event whose occurrence cannot be predicted
C)the state of nature
D)consequences

Question 71

69)In decision trees,the decision tree criterion is to choose the initial decision that has ______.

A)highest expected value
B)highest risk
C)highest probability of occurrence
D)lowest risk

Question 72

75)ABC operates a factory in the United Kingdom.Because the company's existing factory doesn't have the capacity to meet the future demands,it is considering various options.Consider the payoff matrix that shows the payoff for each combination of decision and state of nature.Determine the best maximum payoff for low demand.

A)$4 M
B)$3 M
C)$5 M
D)$10 M

Question 73

XYZ is a paint product manufacturer,and one of the plants is experiencing a substantial increase in demand.The future demand for the products could be low,medium,or high,with probabilities estimated to be 25%,50%,and 30%,respectively.The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand.Given the following payoff matrix,determine the EV for the option of building a new plant. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Demand }$

$\begin{array} { | c | c | c | c | } \hline \text { Decision Aternative } & \text { Low } ( 20 \% ) & \text { Medium } ( 50 \% ) & \text { High (30\%) } \\\hline \begin{array} { c } \text { Subcontract additional } \\\text { capacity }\end{array} & \$ 7 \text { million } & \$ 40 \text { million } & \$ 70 \text { m illion } \\\hline \text { Build a new plant } & - \$ 55 \text { million } & \$ 25 \text { million } & \$ 100 \text { million } \\\hline \text { Do nothing } & \$ 15 \text { million } & \$ 30 \mathrm {~m} \text { illion } & \$ 85 \text { million } \\\hline\end{array}$

A)$ 42.4 M
B)$31.5 M
C)$43.5 M
D)$23.5 M

Question 74

XYZ is a paint product manufacturer,and one of the plants is experiencing a substantial increase in demand.The future demand for the products could be low,medium,or high,with probabilities estimated to be 25%,50%,and 30%,respectively.The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand.Given the following payoff matrix,determine which option has the lowest expected regret.The company should ______. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Demand }$

$\begin{array} { | c | c | c | c | } \hline \text { Decision Aternative } & \text { Low } ( 20 \% ) & \text { Medium } ( 50 \% ) & \text { High (30\%) } \\\hline \begin{array} { c } \text { Subcontract additional } \\\text { capacity }\end{array} & \$ 7 \text { million } & \$ 40 \text { million } & \$ 70 \text { m illion } \\\hline \text { Build a new plant } & - \$ 55 \text { million } & \$ 25 \text { million } & \$ 100 \text { million } \\\hline \text { Do nothing } & \$ 15 \text { million } & \$ 30 \mathrm {~m} \text { illion } & \$ 85 \text { million } \\\hline\end{array}$

A)subcontract additional facility.
B)build a new plant.
C)do nothing.
D)choose a new alternative

Question 75

62)After drawing a decision tree,it is analyzed from ______.

A)top to bottom
B)right to left
C)left to right
D)bottom to top

Question 76

76)Which of the following is NOT one of the elements in the decision-making process?

A)consequences
B)states of nature
C)payoffs
D)cost of decision

Question 77

70)Sensitivity analysis involves constructing a graph and then using simple algebra to determine the range of probability values when there are ______ states of nature.

A)two
B)three
C)four
D)five

Question 78

XYZ is a paint product manufacturer,and one of the plants is experiencing a substantial increase in demand.The future demand for the products could be low,medium,or high,with probabilities estimated to be 25%,50%,and 30%,respectively.The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand.Given the following payoff matrix,compute the expected regret for the option of subcontracting additional capacity. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Demand }$

$\begin{array} { | c | c | c | c | } \hline \text { Decision Aternative } & \text { Low } ( 20 \% ) & \text { Medium } ( 50 \% ) & \text { High (30\%) } \\\hline \begin{array} { c } \text { Subcontract additional } \\\text { capacity }\end{array} & \$ 7 \text { million } & \$ 40 \text { million } & \$ 70 \text { m illion } \\\hline \text { Build a new plant } & - \$ 55 \text { million } & \$ 25 \text { million } & \$ 100 \text { million } \\\hline \text { Do nothing } & \$ 15 \text { million } & \$ 30 \mathrm {~m} \text { illion } & \$ 85 \text { million } \\\hline\end{array}$

A)$10.6 M
B)$21.5 M
C)$9.5 M
D)$14 M

Question 79

Use the following data to answer questions 77-87.
80)Refer to the data on Expected Demand for Acme Widgets.For the various demand scenarios and their associated probabilities,the option to do nothing has an expected value of ______.

A)$21.52 million
B)$40.50 million
C)$34.22 million
D)$65.58 million

Question 80

Use the following data to answer questions 77-87.
77)Refer to the data on Expected Demand for Acme Widgets.For the various demand scenarios and their associated probabilities,which of the three decision alternatives has the maximum expected value?

A)Outsource,with an expected value of $20.95 million
B)Build capacity,with an expected value of $23.70 million
C)Do nothing,with an expected value of $40.50 million
D)Outsource,with an expected value of $31.60 million