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.
Correct Answer:
Verified
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