Suppose that hiring an employee who is a bad fit for the company results in an error cost of $400, but failing to hire a good employee results in an error cost of $400 to the company. Although it is impossible to tell in advance whether an employee is a good fit, assume that the probability that an applicant is a “good fit” is 0.2, while the probability that an applicant is a “bad fit” is 1−0.2=0.8 . Hiring an applicant who is a good fit, as well as not hiring an applicant who is a bad fit, results in no error cost to the company.

The cost of labor is significantly lower in many countries than in the united states. if you move manufacturing to a facility to a country labeled as part of the axis of evil and a threat to world peace you will increase the net income of your client by $10 million per the facility is located in a country which limits personal freedom and engages in state sponsored terrorism. imagine you are a marketing consultant. (a) what would you tell the executives to do? (b) what are the alternatives? what are your recommendations? why do you recommend this course of action?