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Student No: 21614669 Student Name: Amin ABUBAKAR Sign: CYPRUS INTERNATIONAL UNIVERSITY FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES DEPARTMENT OF BUSINESS ADMINISTRATION BUSN460 - OPERATIONS MANAGEMENT SPRING 2021-22 QUIZ #1 25/04/2022 - 30 Minutes Instructor: Asst. Prof. Dr. Kagan Dogruyol The operations manager for a well-drilling company must recommend whether to build a new facility, expand his existing one, or do nothing. He estimates that long-run profits (in S000) will vary with the amount of precipitation (rainfall) as follows: PRECIPITATION NORMAL (40%) 100 500 300 HIGH (25%) 300 200 0 ALTERNATIVE LOW (35%) Do Nothing -100 Expand 350 Build New 750 - 4 a. If he uses the maximax criterion, which alternative will he decide to select? (20 pts.) b. If he uses the maximin criterion, which alternative will he decide to select? (20 pts.) c. If he uses the minimax regret criterion, which alternative will he decide to select? (20 pts.) d. If he uses decision making under risk which alternative will he decide to select? (20 pts.) e. What is the Expected Value of Perfect Information (EVPD)? (20 pts.)