As manager of a retail outlet readying for an uncertain Christmas season, you're not sure how many extra staff to hire and you must pre- commit (decide before knowing busyness). What is the most you would be willing to pay for a perfect forecast of season busyness? (Choose the closest maximum price). Season Low staff levels Quiet (30% kelihood) Busy (70% keihood) $16,333 $22,000 High staff levets $10,000 $54.000

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section: Chapter Questions
Problem 1C
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As manager of a retail outlet readying for an uncertain Christmas season, you're not sure how many extra staff to hire and you must pre-
commit (decide before knowing busyness). What is the most you would be willing to pay for a perfect forecast of season busynesa?
(Choose the closest maximum price).
Low staff levels
$16,333
$22,000
High stafflevels
$10,000
$54,000
Season
Quiet (30% likelihood)
Busy (70% ikelihood)
Transcribed Image Text:As manager of a retail outlet readying for an uncertain Christmas season, you're not sure how many extra staff to hire and you must pre- commit (decide before knowing busyness). What is the most you would be willing to pay for a perfect forecast of season busynesa? (Choose the closest maximum price). Low staff levels $16,333 $22,000 High stafflevels $10,000 $54,000 Season Quiet (30% likelihood) Busy (70% ikelihood)
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9781337406659
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