The local operations manager for the Internal Revenue Service must decide whether to hire one, two, or three temporary tax examiners for the upcoming tax season. She estimates that net revenues (in thousands of dollars) will vary with how well taxpayers comply with the new tax code just passed by Congress, as follows: $$\begin{array} { | l | l | l | l | }
\hline { \begin{array} { l }
\text { NUMBER } \
\text { OF } \
\text { EXAMINERS }
\end{array} } & { \text { COMPLIANCE } } \
\hline & \text { LOW } & \text { NORMAL } & \text { HIGH } \
\hline \text { One } & 50 & 50 & 50 \
\hline \text { Two } & 100 & 60 & 20 \
\hline \text { Three } & 150 & 70 & - 10 \
\hline
\end{array}$$ If she uses the maximin criterion, how many new examiners will she decide to hire?
A) one
B) two
C) three
D) either one or two
E) either two or three

Question

The local operations manager for the Internal Revenue Service must decide whether to hire one, two, or three temporary tax examiners for the upcoming tax season. She estimates that net revenues (in thousands of dollars) will vary with how well taxpayers comply with the new tax code just passed by Congress, as follows: $$\begin{array} { | l | l | l | l | } 
\hline  { \begin{array} { l } 
\text { NUMBER } \
\text { OF } \
\text { EXAMINERS }
\end{array} } &  { \text { COMPLIANCE } } \
\hline & \text { LOW } & \text { NORMAL } & \text { HIGH } \
\hline \text { One } & 50 & 50 & 50 \
\hline \text { Two } & 100 & 60 & 20 \
\hline \text { Three } & 150 & 70 & - 10 \
\hline
\end{array}$$ If she uses the maximin criterion, how many new examiners will she decide to hire?
A) one
B) two
C) three
D) either one or two
E) either two or three

Quizplus · Accepted Answer

The maximin criterion involves choosing the option with the best worst-case scenario. The worst-case revenues for hiring one, two, and three examiners are 50, 20, and -10 respectively. The highest of these is 50, which corresponds to hiring one examiner.

The Local Operations Manager for the Internal Revenue Service Must