A company is considering three alternatives (action) to deal with this extra work load as shown below (in $100,000).If the likelihoods of easy, moderately difficult and extremely difficult are 0.2, 0.4 and 0.4, respectively, the best decision according to the expected value approach is to ________________________ .

A)outsource
B)hire temporary staff
C)use full time staff in overtime
D)outsource if the file modifications are extremely difficult
E)use full time staff in overtime if the file modifications are easy

Question

A company is considering three alternatives (action) to deal with this extra work load as shown below (in $100,000) .If the likelihoods of easy, moderately difficult and extremely difficult are 0.2, 0.4 and 0.4, respectively, the best decision according to the expected value approach is to ________________________ .

A)outsource 
B)hire temporary staff 
C)use full time staff in overtime 
D)outsource if the file modifications are extremely difficult 
E)use full time staff in overtime if the file modifications are easy

Quizplus · Accepted Answer

The Answer is B

A Company Is Considering Three Alternatives (Action) to Deal with This