Asmall building contractor has recently experienced two successive years in which work opportunities exceeded the firm’s capacity. the contractor must now make a decision on capacity for next year. estimated profits under each of the two possible states of nature are as shown in the table below.
next year's
demand
alternative low high
do nothing $ 50 * $ 60
expand 20 80
subcontract 40 70
* profit in $ thousands.
which alternative should be selected if the decision criterion is (enter your answers in thousands. omit the "$" sign in your response.)
criterion payoff
a. maximax $
b. maximin $
c. laplace $
d. minimax regret $

step-by-step explanation:

let's assume

number of candles set =x

price of of x candles =p(x)

we are given

a candle maker prices one set of scented candles at $10 and sells an average of 200 sets each week

so, we get point as (200,10)

he finds that when he reduces the price by $1, he then sells 50 more candle sets each week

so, we can find slope

now, we can use point slope form of line

now, we can plug values

we can use point

and find b

now, we can plug it back

and we get

now, we can find revenue

we know that

revenue = price*quantity

so, we get

ιт ιѕ:

125.28

нσρє ι ¢συℓρ нєℓρ

this "question" looks more like a project is there any other info you can give me about this. it could be too complex for someone else to do on this website