Question

Suppose that a firm is in the process of installing a computer system for providing information services, like preparation of pay-rolls, balance sheet etc., to the firms in an industrial area. The firm has to take a decision as to what size of computer system should be purchased. The three alternatives open to the firm are: large-sized, medium-sized and small-sized computer systems. The management of the firm feels that the overall level of acceptance of its services would be either high or low. The pay-offs expected under various event-action combinations to9gether with the estimated probabilities of the likely demand are

Answer 1

From the given details, we can find out two major strategies before the overall management of this firm.  

It is always helpful to decide on a size of the computer system based on the prior details.

Along with this, we need to perform a market research to take a proper decision regarding the overall size of a system based on the research details and prior information.