Hillary’s Flight Operations offers maintenance and repair services for business jets located in Atlanta. They are considering whether they should expand their operations. Hillary has decided that they have a number of options—four to be precise. They can keep their current facilities; they can modify their facilities to make them more efficient; they can expand their current facility; or they can rent additional space. The decision as to which option they should select is predicated upon the estimation of the direction of the economy for the next four years. Hillary’s Flight Operations developed the following decision matrix. What option should Hillary’s Flight Operations make based on Maximax criterion?
Hillary’s Flight Operations offers maintenance and repair services for business jets located in Atlanta. They are considering whether they should expand their operations. Hillary has decided that they have a number of options—four to be precise. They can keep their current facilities; they can modify their facilities to make them more efficient; they can expand their current facility; or they can rent additional space. The decision as to which option they should select is predicated upon the estimation of the direction of the economy for the next four years. Hillary’s Flight Operations developed the following decision matrix. What option should Hillary’s Flight Operations make based on Maximax criterion?
| Future Air Traffic | |||
| Alternatives | Down | Same | Up |
| Keep As Is | ($40,000) | $70,000 | $100,000 |
| Remodel | ($60,000) | $65,000 | $200,000 |
| Expansion | ($150,000) | $50,000 | $400,000 |
| Rent | ($50,000) | $60,000 | $80,000 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
