Question

3-24 Today’s Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Phyllis Weinberger, who is responsible for advising the president of Today’s Electronics on electronic manufacturing equipment, has developed the following table concerning a proposed facility:

	Profit
	Strong Market	Fair Market	Poor Market
Large Facility	550,000	110,000	-310,000
Medium Sized Facility	300,000	129,000	-100,000
Small Facility	200,000	100,000	-32,000
No Facility	0	0	0

a. develop an opportunity loss table.

Opportunity Loss Table	Outcome
Large	0	310,000
Medium	250,000	100,000
Small	350,000	32,000
No facility	550,000	0

b. what is the minimax regret decision?

Opportunity Loss Table	Outcome						Max Regret
Large	0		19,000		310,000		310,000
Medium	250,000		0		100,000		250,000
Small	350,000		29,000		32,000		350,000
No facility	550,000		129,000		0		550,000

The minimax regret decision rule states the best alternative is the medium-sized facility.

Just need help with making an excel spreadsheet showing formulas for these answers .

Answer 1

SOLUTION:

Given that data Today’s Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Phyllis Weinberger, who is responsible for advising the president of Today’s Electronics on electronic manufacturing equipment, has developed the following table concerning a proposed facility:

	Profit
	Strong Market	Fair Market	Poor Market
Large Facility	550,000	110,000	-310,000
Medium Sized Facility	300,000	129,000	-100,000
Small Facility	200,000	100,000	-32,000
No Facility	0	0	0

So