Telecomp is a U.S.-based manufacturer of cellular telephones. It is planning to

Question

Telecomp is a U.S.-based manufacturer of cellular telephones. It is planning to build a new manufacturing and distribution facility in either South Korea, China, Taiwan, Poland, or Mexico. The cost of the facility will differ between countries and will even vary within countries depending on the economic and political climate, including monetary exchange rates. The company has estimated the facility cost (in $ millions) in each country under three different future economic/political climates as follows.Economic/Political Climate Country Decline Same Improve South Korea 21.7 19.1 15.2 China 19.0 18.5 17.6 Taiwan 19.2 17.1 14.9 Poland 22.5 16.8 13.8 Mexico 25.0 21.2 12.5 Determine the best decision using the following decision criteria. (Note that since the payoff is cost, the maximax criteria becomes minimin and maximin becomes minimax.) a. Minimin b. Minimax c. Hurwicz ( 0.40) d. Equal likelihood

Explanation / Answer

Answer:

Best Decisions;

Country Decline Same Improve South Korea 21.70 19.10 15.20 China 19.00 18.50 17.60 Taiwan 19.20 17.10 14.90 Poland 22.50 16.80 13.80 Mexico 25.00 21.20 12.50

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