Modern Electronics specializes in manufacturing modern electronic components. It also builds the equ
Question: Modern Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Modern Electronics is considering building a new facility but the estimated profits would be impacted by the type of market that develops. The probability for a strong market is 0.3; for a fair market is 0.5; and for a poor market is 0.2. You are responsible for advising the president of Modern Electronics on the type facility that should be built or to not build a facility at all. The table shows the estimated profits under each market and for each size facility.
| Estimated Profits | |||
| Strong Market | Fair Market | Poor Market | |
| Build a large facility | 550,000 | 110,000 | -310,000 |
| Build a medium-size facility | 300,000 | 129,000 | -100,000 |
| Build a small facility | 200,000 | 100,000 | -32,000 |
| Do not build a facility | 0 | 0 | 0 |
Using the information in the table above develop a recommendation for your president. Be sure to explain why you are making the recommendation and you must include a recommendation that maximizes profits and a recommendation that minimizes loss.
Deliverables: Word Document
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